DivX Inc. has announced that its video technology will be integrated into the PlayStation 3 via a future firmware update.
The technology will allow PS3 users to access a broad range of content in the DivX digital media format, the company said.
According to the Associated Press, JPMorgan analyst Paul Coster described the agreement as "an important breakthrough" for DivX. "DivX's adoption on the Sony PlayStation 3 was not likely widely anticipated," Coster said.
He also expects DivX technology to be used in Microsoft's Xbox 360.
In a conference call with investors, CEO Kevin Hell did suggest that the video codec would appear on the Xbox 360, although he also said that a deal had not been finalised.