It does connect to your home network via wifi--no wires needed! My boys watch a lot of netflix and youtube. Once you're connected, you have a regular browser window. We love the PS3! One word of advice: if you are going to be using it as a blu-ray player much, buy the ps3 remote control. Otherwise, you have to use the game controllers to operate the blu-ray functions, and it is not as intuitive as you'd think. Good luck!