Like the Xbox 360, the PS3 will also support iPods and USB mass-storage devices; it can copy MP3 or ATRAC files to the internal hard drive.
With these media options, Sony keeps pushing the PS3 as a device capable of more than gaming. We're not sure how many of these features we'll use, but maybe gamers' families will. We just hope that these non-gaming decisions didn't contribute much to the cost of the system.