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SamuelRSmith said:
The 360 comes with a scaler chip, whereas the PS3 does not. Probably came out of their design when they were doing their cost cutting (along with second HDMI port, etc).

 

 In fact ,this is wrong,as the PS3 DOES have a hardware scaler chip ,although more limited that the 360 one.Sony only allowed the access to that chip since firmware 1.80 and only for horizontal scaling.Its unknow if they only allowed horizontal scaling because the limits of the chip or because they dont want to allow full scaling for something related to their movie business.

 

http://www.dailytech.com/article.aspx?newsid=5881