Everyone who wants to use their Next-Gen console as a media center in addition to playing games received an early Christmas gift last month when DivX support was added to both the PlayStation 3 and the XBOX360.
Unfortunately for those who use the Matroska file format (.MKV) support for this format was not included.
Until support for this popular format is added there is however a quick and relatively easy solution to this problem that does not require any transcoding of the video stream which is time-consuming and results in degradation in the quality of the picture.
This process just extracts the audio and video into two different files onto the HDD. The audio is then transcoded and repackaged together with the untouched video stream into a file that is playable on the console (MP4). This process only takes minutes on a regular computer (compared to hours when transcoding of the video stream as well).
This file can now be streamed to the console, burned onto a disc or placed on an external USB device.