Firstly, for the people who don’t know what DiVX is, it is a codec which is used by most piraters to released movies onto the internet. It is also a very good codec for making very big DVD’s, into smaller more manageable movie files. It seems that Sony will be giving the PlayStation 3 the ability to play them back soon, which means a few things.
It means that, when compared to the X360 (though it may come soon), it will be a more capable media centre machine. It means that people can take their whole DVD collections and put them on the PS3 hard drive, and never need to put another DVD in there very valuable Blu-Ray drive. It means that game developers can add 10+ hours of video to a Blu-Ray disk and still have space for ridiculously large games.
Currently developers can now use the DiVX decoder, but there is no news when the rest of the PS3 owners will have the ability to use it. Expect an update people.

For more info, click over to the Joystiq Blog.