At yesterday's Sony event, we reviewed a few details about how the PS3 will handle music playback. The system will rip your own audio CDs to MP3 or ATRAC, logging ID details through Gracenote. Sony also says that the device will download and add album art if it can be located.
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.