Ok, so the PlayStation 3 wasn't exactly the most flexible high def device out of the gate; despite Sony's claims, DVDs aren't upscaled, there's no component out, and from what we've heard, even though its HDMI 1.3 output technically supports 1080p/24 (for the uninitiated, that's 24fps to match a film master print), we understand it's not yet playable as such. (Note: we've yet to try 1080p/24, as we don't have any media mastered thusly.) However, this could change according to a translated Impress interview of Sony PS3 A/V developers. Obviously something is bound to be lost in translation, but if the text reads correctly then the PS3 will not only be getting better software SACD support, but it'll also get user-selectable internal YCrCb image processing (instead of RGB -- although we've yet to hear of component output plans), 1080p/24 support, and will finally allow for DVD upscaling as well. We have no idea exactly when this will happen (or why this wasn't made clearer to us US-dwelling videophiles) but apparently Kutaragi-san and the gang are on the case -- godspeed, PS3 team.
Update: we printed the PS3 would be getting SACD support. Supposedly it's already got that, but future version will have better sound and dynamic range. So there!
Read - Impress (new audio support)
Read - Impress (new video support)
Read - Beyond3D translation
PS3 to get upscaled DVDs, 1080p/24
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