Well as someone who's owned every Blu-ray and HD-DVD player on the market, I would place PS3 in the upper tier.
In case your wondering, I'm a big home theater freak and I've played the 'buy and return' game from Best Buy to seek out that perfect player. They hate me for this I know, but I've invested well over 10 grand in this company this year alone.
Under extensive testing on my Pioneer plasma (which is considered a benchmark amongst flat panels) I would say the PS3 comes in 2nd place out of the 6 that I've tested as far as PICTURE QUALITY is concerned. This should one of the most important aspects, since Sony taunts better video and audio. The audio is okay, but I'm not real big on that so I don't really care.. and a nice set of surround headphones paired beautifully with a PS3 for immersive playback (in my case). I would give the 1up to PS3 because it has the ability to upgrade itself via firmware, and I'm pretty sure Sony will keep the PS3's Blu-ray performance competitive for the years to come.
From worst to best in my testing...
Sharp was my least favorite with playback errors and overall lack of features. Samsungs are a little better and are a safe bet. Sony players are very good and the PS3 matches the quality of these players, and the Panasonic was my favorite. The Panny performed fast, smooth, and effortlessly. It also had the best picture quality on my plasmas as well as Sony XBR 960 tube via 1080i.
The PS3 is a steal for what you getting.
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