This unit not only does 3D but it can play 720 MKV and Xvid. Out of 400 movies in my library it only refused to play 2 of them. They were .avi but I got a "file format not supported" error. All my other .avi files played fine. I have yet to try any 1080p MKV. The 720 ones played back smooth as butter! This is a must have for anyone needing bluray and a media center all in one!