yes. the X1 can play music, video, and picture files. It also supports DLNA I believe. As well as audio CDs.
you can also set your own image as the background, and I heard in the Feb update they will give you more options to tweak that such as allowing you to adjust the transparency of the background image.
meanwhile.......over at the PS4..........we can play music files and choose from a few premade themes to use as our background......yay......
when it comes to features, especially media features, there's no question the X1 has the advantage over the PS4. even using IE to browse the net was like night and day compared to browsing on the PS4.
HOWEVER, the PS4 still has one major advantage over the X1 - faster disc install times. and for me, that's more important than the above media features.