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In a recent interview, Sony developers revealed that "the PS3 is on target for an update to add better software SACD support (better sound quality and wider dynamic range), user-selectable internal YCrCb image processing, 1080p/24 support for films (for crisper, more realistic Blu-ray film playback), and perhaps most importantly, the ability to play back standard-definition DVDs at 1080p HD resolution."
Although the PS3 includes HDMI 1.3, which supposedly supports 1080p/24, the technology is still unstable. This upcoming update should address these problems.
Sony spokespeople *say* a lot of things; they promised a patch for the 720p to 480p downscaling problem, when it first surfaced, almost immediately. Then, as of today, they admitted that NO ACTION has been taken. So basically they lied to save face. It's in this article, about 3/4 of the way down:
We'll see if their claims actually amount to anything this time; they also said they were "on target" with their manufacturing of the PS3, but no one can find one...
well sony is making better playstation3 as i write this down so the people that brought it the day it came out arnt that smart not to be mean to any of you that did