What games were tested with this? All of them? Sony has a custom resolution setting. Did they set games at 1080i or just left it at 720p for it to downscale to 480p. I would think setting the system to 1080i then booting it would boot it in 1080i. If not it could be that fact that the games were not meant to be 1080i like they say why would the game upscale to somehting it wasnt meant to be use at.
Or let these people with old HDTV's be sad as I've ever heard of a TV like this until now.
I hate to continue on with something that we have seemed to move past, but I was watching DL.TV earlier today and they addressed the problem with their PS3 they had for testing.
According to the folks on the show (mish-mosh of Digital Live, EGM, PC Mag, etc), the issues are comming from games like Resistance that are designed to run at 720p, but on TVs that do not support that format, the PS3 won't upscale to 1080i for some reason. That of course would be a problem for people with older HDTVs, ones that only display in 480i/480p/1080i.
...According to those folks, who were using a brand-new 1080p set, they set up the TV to display at 1080i and the PS3 to do the same, and it simply down converted to 480p, not the HD glory that they were expecting. They did make note that when they hooked up the PS3 to the network in the office, it did download some kind of firmware update, so they are not certain if it fixed the problem or not.
My guess is that it won't be a huge deal, as most people who are buying PS3s will have the money for a big-buck, modern, HDTV. But for those who don't that is a bit disappointing, especially when you do have to buy the component cables, or the HDMI cable to get the best from the system anyway.
I look at it this way; If the 360 can do it (that is, up-convert the video), the PS3 should too. I'm sure it was something that was overlooked, and an online update should fix it very soon.
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EDIT: BTW, I'ts like very cold here. Windy too... I kinda feel like I should go give out some soup to the guys camping out at the local Best Buy.