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Are you kidding me? My PS3 can play like 5% of all the downloaded movies (what's that? mkv you say? I say, "NAAAY!") without transcoding.
Well, I think Sony Pictures Entertainment wouldn't be too happy with MKV support in Sony products And yeah transcoding sucks. So either buy a Samung TV with DLNA support and use a proper DLNA server (e.g. minidlna) or best use a HTPC with XBMC.
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