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Oddly enough the name DivX started as a joke, specifically referencing the failed format, but as the popularity of DivX grew.. they got stuck with the name.Wow, I always thought it was the same thing.
From a marketing standpoint it's terrible as there is so much negative reaction to the name DIVX, justifiably so, and is recognized even by those unfamiliar with it, as a failed format... so naming your product, especially one that's effectively in the same industry (video) after a failed format isn't a brilliant move.
This is one inside joke that certainly backfired on the creators.
Gotcha. The article was not very clear on that.Currently the system will not play (recognize yes but not play) any Divx video whether streaming it or not... It is only confirmed that the system will get support in the future.
So it appears they have to update the video player software on the PS3.