As I suspected it does a combination of blending and upscaling depending on your movements.
(Tried multiplayer, got 600 points and 1 kill!)

Stationary:


vs turning

Seems the horizontal resolution is upscaled to 1920. (I was spinning around on my axis, turning fast enough to see upto 6 after images staring at the screen)

Different strategy while strafing:

The cables are super imposed from the previous frame, causing some nasty interference with the lights. But overall the image is a lot sharper than during rotation.

While running it seems to add some sort of radial motion blur to hide the effect



Overall the image quality on multiplayer seems to be toned down more than just resolution.

Multiplayer:


Single player:


Or maybe they just liked it better overcast in multiplayer...

@puggsley

battlefield 4 looks and plays better on P.S.4, along with all the others

you may gloat over this issue but that won't make visual parity ever go away, you keep mentioning titanfall runs higher but fail to understand it's a much simpler looking game with half the human player count

I guess we will patiently await the next batch of titles to scrutinise their technical aspects, as some users are using this to claim Xbox1 is now a good deal

i was in the same map at that time lol.

Wow, that is so much different than I was led to believe. Over an over again it was thrown out that it was true 1080p 60fps. How that was the only test of 'true next gen gaming.'

Is this now the end of 'frame gate?' One can only hope.

one night i went and go drink on a sunday and then this shitstorm happens

1080i refers specifically to interlacing, which doesn't involve any interpolation of data. The video source generates even and odd vertical scan lines alternately during the refresh cycle (ie. for 60 hz, 30 even scan lines per second, 30 odd scan lines per second). When played at 60 fields per second (hz) total, the eye sees a complete image composed of the alternating even and odd scan lines. 

Interpolation requires computational calculations to estimate the inbetween pixels which are generated on the fly. So interpolation creates a blurred, higher resolution image.

For a quick, easy to comprehend example of interpolation, take a 720x480 image, the sharper the better, and then resample it in a program like Photoshop to 1440x960. Photoshop will create three new pixels based upon calculated estimations for every one pixel of original source image data, resulting in the larger image, which will be softer in focus (slightly blurred) due to creating data out of calculated estimations. 

Pretty sure this is what KZ is doing in multiplayer mode except it's taking a 960x1080 distorted frame and interpolating the horizontal pixels to twice that count at 1920, which explains the somewhat smeared picture (for the lack of a better description) when rotating the camera quickly.

Does this mean Sony is lieing just as Microsoft? impossible

It's not your imagination. 

I played exclusively on single player mode and didn't even try online mode until reading this thread and I could instantly tell there was something different before I started to break down what was different.

Softer focus, less detail, that smearing effect (motion blurring) when rotating the camera. Loses the sharpness and detail of single player mode which I was quite familiar with since I was playing it on a 37" 1080p display at a distance of about 24" where I can see individual pixels.

then get a pc then. If a game is fun,then that's all that matters to me personally. graphics only matter to a point.

I do have one. Thanks.