I don't believe this receiver will decode master audio, it likely will take a dts-hd ma and output it as dts-hd high resolution, but if your ps3 is decoding the dts-hd ma and outputting it as pcm then you are getting the full resolution of audio. The old fat PS3 can't output bitstream, but the slim ones can, so depending on which PS3 you have, it may not really matter about the receiver not being able to decode the master audio. However, with blu ray playback on my PC using PowerDVD 11, I can hear differences in the audio when letting the software decode the audio and output as PCM vs bitstream output with the receiver doing the decoding. So my reccomendation is that if you have a slim ps3, return the receiver and get one that does decode the master audio portion of the bitstream and set your ps3 to output bistream. Look on the yamaha website and where you see the receivers details, look for the dts hd logo, and if you see master audio under the words dts hd then you are good to go.
