DivX announced that it is now offering its video encoding technology to PS3 game developers allowing them to create high quality video for PS3 games. According to DivX the new technology will allow for games with better video embedded.

Game developers can take advantage of DivX compression and maintain high-quality video. DivX says that the PS3 is the first console capable of playing DivX videos. Let’s hope this doesn’t mean longer cut scenes in our games.

"We are excited to work with Sony Computer Entertainment to offer DivX video encoding to PS3 game developers," said Kevin Hell, CEO of DivX, Inc. "PS3 users can already use their PS3s to watch their own DivX videos, and now they'll also be able to enjoy the quality of DivX in the games."

Via DivX