Does playstation 3 play Blu-ray movies?

Yes it is one of it's features and it also plays DVDs and upgrades them to the level of your HDTV and Connection. Of course nothing can play a Disc in 1080 P if your HDTV and Connection are set up for 480I or 720p. That means if you have a 1080P HDTV connected with an HDMI cable you can play blue ray disc movies and games