i have a ATV and love it, but have recently been watching some blu-ray movies and admit they are amazing, so my question is this: how much of a difference is the HD ATV movies vs the PS3 blu-ray movies?
Blu-Ray will be virtually uncompressed 1080 video (that's why they hold 50 gigs or so) and likely have uncompressed audio (True HD).
The ATV will have H.264 720 compressed video (highly efficient, but compressed nonetheless) and, at best, Dolby Digital (compressed 5.1) audio.
Well if your TV supports it, its
720p(ATV) vs 1080p Blue Ray disk
Also depends on how you connect that devices
As others have said, it really depends on your TV. I have a Pioneer Plasma and you can see the difference using blu-ray.
I use the PS3 as my dvd replacement / blu-ray player. ATV is mostly for on-line content. I tried to use the PS3 for playing on-line content, but the interface sucks for big libraries. For me, its also been a crapshoot whether it will play the same video on more than one occasion. One day a movie will play, the next, it comes up as unsupported data type.
After having used both, I really see them as having two different uses although some would try and say they are the same.