Seeing as we've already established that the PS3 is the best bargain Blu-ray player out there now and a better DVD player than the Xbox 360, it's pretty fitting that Sony's dream machine is going to have DVD upscaling.
Image via Gamesblog
Update: Apparently 360 already does upscaling via VGA. Looks like we need to trade in our component cables for some VGA action. Wonder if they've fixed all the Gears VGA problems yet?