A move like this will only shove the PS3 further in the toilet than it already is, not to mention alienate the majority of HDTV owners out there. So much for the Blu-ray drive being the PS3's major selling point...

"Sony Japan has outlined details of its next PS3 firmware update, due tomorrow, but there's no mention of 720p Blu-Ray playback. So yes, as expected, unless you own a 1080p display you'll still have no choice but to watch BD movies in 1080i."