With the release of firmware v3.50, Sony has announced that the PS3 will no longer support lossless audio during 3D Blu-ray playback.

Sony has confirmed when Dolby TrueHD is selected as the audio format, audio will be output in Dolby Digital during playback of Blu-ray 3D content. As for DTS-HD, audio will be output in regular DTS.

Other limitations that come with firmware 3.50 include mild support for BD-Java features, some menus and subtitles might be flattened, and some USB and 3rd party controllers have been disabled.

In response to the 3rd party devices no longer functioning, Sony made their stance clear.

“SCEA does not support continued functionality of counterfeit or unlicensed controllers in system software updates and these devices may cease to function in the future because of system software updates.”

“SCE and its affiliated companies disclaim all liability for any loss or damage suffered by you or any third party through the use of counterfeit or unlicensed products.”

For those of you capable of 3D Blu-ray playback, let us know your thoughts. Is lossless audio worth losing for 3D Blu-ray playback?

i think is the hdmi 1.3 limited bandwidth so something has to go....in this case lossless audio.

Writesimply sounds like a genius who knows everything!

"It is not about the HDMI port of the PS3."

Then what is it? Why do new 3D tvs required HDMI 1.4? Its all about the HDMI port which v 1.3 doesn't have enough bandwidth to transfer 1080P at 120fps with lossless audio. That is why V1.4 came in.