Ok, had the Nexus 7 for a week now. It's my first tablet. I love a lot of things about it, but have a few things that get under my skin, especially since Google created Android. Like no support for Adobe Flash, the video camera app is set to 480p (but heard you can turn on the ability for 720p), and this, playing MKV and AVI files. Sure there are plenty of players on the market that claim to be able to play this format and that, with this codec and that. But it doesnt work for me. I have some free MKV files that came with purchased movies. I was able to copy them to my Galaxy S3, as well as AVI's, and it played them flawlessly, no conversion, just like I would play these on my Windows PC or Playstation. I dont want to install some app from the market and additional codecs to try and get my MKVs to play (tried this already and the videos look like garbled color pixles). This tells me there's something in the Samsung S3 VideoPlayer app that can play these videos, and that means it should easily be able to run within Nexus 7, I think, because they are both Android. I believe this is Googles way of forcing you to a cloud structure, and to purchase or rent videos. Amazon and Apple do the same. They want you to continue to pay, over and over. I am trying to find the valid VideoPlayer.apk from the Galaxy S3 to try and install it on my Nexus 7 (long story, but I sold my S3 because I'm ready to get the Note 2). Has anyone tried that yet? I really love my Nexus, but one of the reason I got this was for video playing, and I dont want multiple versions of different formats of videos to work with this and that device.