Depends on the ps3 settings and what the game itself is (720p, 1080i, 1080p). My plasma supports the same resolutions as yours. There is a difference between games and blu ray movies. Basically if you check 720p and 1080i under ps3 output settings, games will be played in 1080i (this is if you download the ps3 firmware upgrade). Problem for me is my tv's native resolution is 720p (yours probably is too), so I would prefer to play them in 720p, not 1080i. So I UNcheck the 1080i under output settings. Problem fixed, right?? Well not quite. This works fine for 720p games (nhl 2k7, resistance), but the problem is now with BD movies. BluRay movies (1080p) cannot be shown in 720p (but they CAN in 1080i), so with 1080i unchecked and watching a movie, the movie will be shown in 480p. Simple solution is to switch back and forth depending on what format you are watching (ie a 720p game vs a 1080p blu ray movie). Hope I havent confused you very much.
So I happened across a ps3 at Costco so I snagged it but haven't opened it yet as it is a Christmas present.
After much research, I'm now confused over which resolution it will actually display on my TV. I have a Toshiba 46HM84 which can display 720p and 1080i. With the HDMI cable, does anyone know what the ps3 will display at on this TV? I know games may have some their maximum resolution listed on them but what about bluray discs and 1080p games? Will it automatically display at the highest resolution that my TV can handle?

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