Playstation 3, in addition to providing exceptional Blu-ray playback (with fast start-up times), it offers excellent DVD upscaling (must use a HDMI cord), playback of a wide variety of media (file formats such as: .avi, .divx, .xvid, .mpeg, .mpg, .m2t, h.264, AVC, .m2ts, .vob, .mkv, .mxf, .jpeg, .mp3, .wma, .aac, 480i/p, 720p, 1080i/p, AVCHD and HDV video from many of today's high definition camcorders) the ability to stream said content from your PC using freeware apps such as 'PS3 Media Server', or 'TVersity', wirelessly, or through a network cable, the ability to store said content in the ps3's internal hard drive (or add an external hard drive, usb thumb drive, or change out the ps3's internal hard drive for a larger 2.5" 500gb internal drive), the system is easily upgradeable via internet, (many updates have been offered for free by Sony).
Other benefits include web browsing, free membership to the Playstaion Network (thus allowing you to download free game demos, movie trailers, etc), and of course game play of all PS1 and PS3 games