We already knew that the PS3’s impending firmware update would unlock the BD-Live feature, but PC World is reporting that the “Portable Copy” feature is also being let loose. What Portable Copy does is convert Blu-ray movies to SD which can then be transferred to your PSP. It’s unclear how long it will take to copy to SD or how big the files will be, but Sony fanboys will surely wet themselves over this news.
[Update]: Cohen screwed up and Portable Copy will not be supported in the next firmware update for the PS3.
PS3 Firmware Update Enhances Blu-ray Capabilities [PC World]