PS3 can successfully play AVI encoded with Motion JPEG (Linear PCM) or Motion JPEG (μ-Law); PS3 will or will not play AVI files encoded with other video or audio codec. That is we will often encounter issues in playing DivX encoded AVI on PS3, Xvid encoded AVI on PS3, WMV encoded AVI on PS3, or other video encoded AVI files on PS3.

In order to successfully play all kind of AVI files on PlayStation 3, a recommended solution is to convert AVI to PS3 more supported video format at http://idealshare.net/video-converter/can-ps3-play-avi.html