Unless they removed it from more recent units the PS3 definitely has optical out. Yep, and it shows. In general it's not too bad, but the aliasing tends to be a lot worse than when I play on my 4 year old computer.

I thought the whole damned point of the PS3 and its much touted hardware (including Bluray drive) was to get 1080p out, lmfao. No wonder the 360 competes on graphics with PS3!

Oh well, good for a laugh I guess:)

Since it definitely has optical out, then yes, OP, HDMI cable + optical out (unless you have a receiver you want to run it through before it hits your monitor).

I looked at my speakers, I don't think they can take a optical wire. Just has a stereo input and satellite output slot.

The only reason I own one is for Blurays, and those are output at full resolution. But, the games are definitely not anything more than 720p. I wasn't going to buy an XBox because MS is more or less on my do not purchase list. (Well as much as possible, they are a monopoly and the main alternative is to buy Apple)

As for the topic at hand, there are break out cables that will separate the audio, but without some means of decrypting it, I'm not sure how useful that's going to be. Most likely the OP is going to need to use the Sony break out cables and like a TV wonder USB stick.