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Kwaad said: First. When the emotion chip comes out and they do a firmware upgrade. The only diffrence is the old units will have better cooling. (as the chips will be turned off) Second. superchunk you are wrong about that. It only effects the firstgen panel TVs that only ran at 480p and 720p. The PS3 does not re-sample a BluRay to 720p. It only does from 1080p and 1080i. However 99% of LCD HDTVs out there right now have a 'sort' of 1080i. So you dont need to worry about that. And that is only effected by the BluRay player. I do not beleive they have fixed it yet in a firmware update.
I do not think they will shut down the emotion chips any time soon in the old PS3s. Until they have 99% compatibility with the software (which btw would allow them to offer downloadable PS2 games since they have software emulation), there is no reason to turn off the emotion chip. Also, I Sony fixed the issue by re-ordering the resolutions: 1080p, 1080i, 720p, and then 480p. I think the only fix for the future would just be allowing you to choose on your own (since some things look better in 720p instead of 1080i). The other problem was if the TV didn't have 720p, but all the games should be in 1080p soon anyway. Finally, DVDs will be upscaled soon as well. It took Microsoft a year to get that working, but since Sony is behind they need to get that out soon.