Sony has finally released the v2.10 firmware for the Playstation 3. This highly anticipated update adds DivX and VC-1 (WMV) video playback support and upgrades the console's Blu-ray Disc player to Profile 1.1. From the Playstation Blog:
Firmware Update v2.10 is now live. This new system update enhances media playback on the PLAYSTATION 3 in a number of ways that the PS3 community has indicated are important.

We are introducing a much-requested video playback format with this update: DivX and VC-1 (WMV) videos become playable in the Video section of the XMB. This update also brings the PS3’s Blu-ray drive up to Profile 1.1. “Picture in Picture” and other enhancements become available on Profile 1.1 compatible Blu-ray discs.
While the first Profile 1.1 compatible titles won't hit stores for another month or so, its good to see that the Playstation 3 is ready for their release. If you'd like to read more, the entire blog post can be found here.