Turns out it's a good thing I was so dubious.

SCEA contacted us today to let us know we were right to doubt, the Playstation 3's firmware 2.20 update will not include Portable Copy support, despite reports to the contrary.

Too bad, I'm about to go away on a trip for a few days and was thinking I might be able to bring some movies with me. Of course, I'm also still confused about whether all Blu-ray movies will be copyable or if it will be only for movies that have an extra PSP file included on the disc.

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