Of course the cell could handle transcoding but it's not a magic wand. It would still take hours to transcode the content from disk to HDD. Also, yes the PS3 does support external drives, but only FAT32. At the very least large files would have to be split into chunks.
IMO It would be such a niche feature it would scarcely be worth bothering to implement it. The only way out is if managed copy were tied to a download service, such that if you inserted the BD, that the PSN download service would permit you download the equivalent digital copy. Even that would be fraught with all sorts of technical and legal issues.
"Ah, HD DVD, our old friend - we thought we'd never see you again. But there was no mistaking it, here's the logo tucked away in Chinese manufacturer TCL's booth on a China Blue HD deck next to a similar Blu-ray player."
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Of course the cell could handle transcoding but it's not a magic wand. It would still take hours to transcode the content from disk to HDD. Also, yes the PS3 does support external drives, but only FAT32. At the very least large files would have to be split into chunks.
IMO It would be such a niche feature it would scarcely be worth bothering to implement it. The only way out is if managed copy were tied to a download service, such that if you inserted the BD, that the PSN download service would permit you download the equivalent digital copy. Even that would be fraught with all sorts of technical and legal issues.