I’ve described how one could play MKV files on the PS3 before. Another method is to play them using Showtime, a media player that can be installed on a jailbroken PS3; it supports MKV natively. This method is better than my previous solution because on-the-fly transcoding is not necessary and hence, the fast forward and rewind capabilities of the video are not lost.
To convert my previous solution to this method, I had to install Showtime on the ps3 of course and edit my
/etc/mediatomb/config.xml file (change the transcode line for mkv files back to
x-matroska). In addition, I did a forced rescan of my files (removed directory and re-added it to database using the web interface) so that the new rules can be applied.