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Player2 said:

There isn't a big difference between 1080p and 720p.

What's going on:

Unlike CRT TVs, LCD TVs have only one native resolution. Everything that don't have that res is upscaled/downscaled. So when you send an image to the TV that doesn't match the screen native resolution (like that 720p image from a PS3) it looks like trash because it's the TV the one upscaling it to 1080, and they usually do a poor job at it.

Your X360 720p games look good because the X360 takes the 720p game image, upscales it to 1080p and then sends it to the TV.

So: Use a 720p TV for games with 720p output.

I may be misunderstanding what you're saying.  I'm using an LED HDTV (still an LCD, I know).  It always shows what resolution it's displaying in the upper right hand corner. 

Doing a quick run through of the things connected to it

  • If I run DirecTV HD on it, it shows "1080i" in the upper right, even when the programming itself is sub-HD
  • When I run the 360, it says "1080p" regardless of what resolution the game I'm playing is running
  • When I run my Wii, it says "480p" regardless of what game is running, even Super Nes games!
  • When I change to Wii U, it says "1080p" regardless of which game I'm running...even if I change it to Wii Mode (which is still blurry)
  • When I run my PS3, it says "1080p" until the actual game starts playing.  Then, it says 720p.
  • When I run the PC, it says "1024 x 768" (I can run it sharper but I sit so far away that everything is too small to see)

Give me some guidance, here.