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gillies-
I haven't used a PS3 for this but normally the machine doing the displaying can only accept a certain number of video formats so, if it's incompatible, the machine running PS3 media server (the laptop) has to transcode them first.
If all the files are in a compatible format then that wouldn't be an issue
aggi
You could, not sure whether it would be any better than a Raspberry Pi. May struggle to transcode incompatible videos.