It depends...on which type is used. ATRAC is Sony's compression format (originally comes from the Minidisc)and a friend of mine who is into the whole digital audio thing said it is rather good, yeilding less loss of audio for similar compression as MP3, but I believe he said that is for ATRAC3 or 3Plus, and I don't know what the PS3 uses.
MP3 at 320K is already quite decent, sounding near CD level but not quite perfect.
AAC is what iTunes uses, and is supposed to yeild better quality than MP3 for a similar bitrate also.