So to summarize:
-Both consoles are capable of native 720 and 1080 (PS3 has more native 1080 games currently)
-Upscaling can be done with a hardware solution, software solution or relying on the TV
-360 has a full-working hardware upscaler, PS3 has one but not fully functional, so it relies on the software or TV
-It depends on the developers and resources
A lot has been said about complex games running at 1080p 60fps, i don't know about WKC (Although Level-5 is amazing and they're working close with SCE), but one dev i don't doubt is Polyphony Digital, there are a zillion PS2 games and only 2 of them, both made by Polyphony (GT4 and Tourist Trophy) are capable of 1080i, This with PS2 hardware, now we've seen GT5:P, and that's not even the complete game, so i don't doubt them...







