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What audio file formats does the PS3 use?

Vague question there....

Blu-ray Disc playback now supports DTS-HD Master Audio and DTS-HD High Resolution Audio output

Games offer DD 5.1 or DTS on the ones i checked.
 
It supports MP3, MP4/AAC, ATRAC, WMA, WAV, and audio CDs. Older (pre-fat 40gb) support SACD as well. Sometimes it can be a bit fickle with bit rates for AAC files.

For movies, it supports up to DTS-MA and DolbyDigital TrueHD. The fat models can't bitstream high def audio though, not that it makes any real difference where it's decoded.
 
Media sharing programs (that run on a computer) such as PS3 Media Server can transcode other audio formats like FLAC on the fly before serving them to the PS3.
 
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