The PS3 has already had DivX technology available to users since firmware update v2.10 but now DivX is looking to expand this feature by extending it to PS3 game developers.
Accessiblity to such techonology will allow developers to compress and create DivX format videos for their PS3 releases. "PS3 users can already use their PS3s to watch their own DivX videos," said DivX CEO Kevin Hall, "and now they’'ll also be able to enjoy the quality of DivX in the games."
Although no speculation can be made as to its specific implementation just yet, it should be interesting to see how PS3 developers take advantage of DivX's video compression and high quality video technology (better resolution in cutscenes is a given). DivX is also in the process of approving the PS3 as DivX certified to allow DivX Inc. to offer a better media experience to console owners in the future.

Best news I've heard in days. Though I wonder, not for the sake of trolling, mind, but just out of curiosity... is the Xbox 360 a "DivX-Certified" machine? I imagine it is, but I don't know.
this means 50GB blu-ray and then developers can include such long CG movies or many movies on end of levels no need cutscene XD
I don't see what this would change. Developers already use licensed tools to compress the video footage in their games, just look at the credits and you'll see what license the developer bought and used in that game.
And DivX isn't really THE best codec out there.
@ Mephisto
i dont believe it is
I've heard that Xvid is better than DivX.. is it true? :S
psn id: gingo... DivX is great for developers to have as it is such a great codec, hopefully developers actually start using it though and dont rely on their older methods
Cool! Sounds good...Nice to see companies coming together, for the sake of better entertainment for EVERYONE!!!
sounds good
There are better codecs out there.