Gamers using HDTVs that do not support 720p/1080p but do support 480p/1080i will be downgraded to the 480p resolution.
This occurs when a game is built with native 720p support and your HDTV doesn't support a native 720p. Rather than upscaling to 1080i it will downscale you to 480p - the resolution of a standard TV.
The article on ps3.ign.com states:
"As it turns out, gamers who own older HD sets that feature only 480i, 480p, and 1080i resolution input capabilities will have to settle for the display quality being downsized as the game boots in its 480p mode rather than upscaling the image from its more desirable 720p mode to the TV's 1080i. We tested this development on older HDTV sets with games designed for 720p but not 1080i -- Resistance: Fall of Man, NHL 2K7, Tiger Woods PGA Tour 07, and Need for Speed Carbon. Sure enough, the system downshifted all four titles to 480p rather than moving up to 1080i."
For many of us, this will not become a problem. However, for those running with older HDTV's that do not have a 720p option, you may be disappointed. If you're considering a PS3 for its high definition graphics you probably already have a newer HDTV (right?).
source: ps3.ign.com
Thanks to KingDrewsky for passing along the information.
