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SvennoJ said:

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...

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.