It seems that way. A few people over on GAF who have Japanese retail units have confirmed that attempting to play Resistance (a 720p game) with the XMB set to 1080i are greeted with an error message that prompts them to switch it to 480p. This happens over component and HDMI, and Insomniac has stated that it's a hardware issue, not software. The current rumour is that the PS3 doesn't actually have a hardware scaler.
This probably won't affect many people over here since our HDTVs are required to support 720p and 1080i as a minimum, but in the States a lot of people have HD CRTs that don't support 720p and can only display 480i/p and 1080i. Those people will only be able to play 720p PS3 games at 480p, regardless of their AV connection.
Another big thread about the issue over on the IGN Boards (requires Insider) where from the looks of things a ton of people in the US are affected by this and are mightily pissed.
This probably won't affect many people over here since our HDTVs are required to support 720p and 1080i as a minimum, but in the States a lot of people have HD CRTs that don't support 720p and can only display 480i/p and 1080i. Those people will only be able to play 720p PS3 games at 480p, regardless of their AV connection.
Another big thread about the issue over on the IGN Boards (requires Insider) where from the looks of things a ton of people in the US are affected by this and are mightily pissed.
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