Either format, and many others, work just fine with this item

So saw this one on Amazon, the price was good, looked like it played all the formats I would use, so I decided to check it out.

That's a minor inconvenience, but the remote works well, the format is easy to use, & it reads quite a few different file types

Have some trouble with playing .avi format and the hdmi doesnt seem to work, but the rca does

It supports all major video formats and has options for both USB (external drive or memory stick) and SD memory cartridge.

Works as it should.