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From CriterionGames.com:

"With the latest SDK Sony freed up some memory. We've upgraded to this SDK and made use of the extra memory to scale the 720p game to 960x1080 as part of the very final post-process render stage in the game; this 960x1080 video mode uses the PS3 hardware scaler to upscale the image horizontally to output at 1920x1080.

"This scaling process in Burnout costs a very small amount of frame time (under 0.4% of a 60hz frame, which we can afford without dropping frames) since we're going to a larger number of pixels, but it enables those with 1080i TVs that don't support 720p to play in HD.

They've also apparently added in-game custom soundtracks along with a few other goodies. :)

One of the main issues in ps3 vs 360 development when the ps3 launched was that the PS3's OS at the time required 96mb of RAM, compared to the 360's which only required 32mb of RAM. Since then, the XMB's ram usage has been decreased to 64mb, and, according to this, has now been decreased even further with (presumably) firmware 2.20.