Older 1080i-only TV sets that do not support 720p will find themselves playing games such as Resistance: Fall of Man at the lower resolution 480p.
While the Xbox 360 will take a game rendered in 720p and convert it to 1080i for older HD televisions, the PS3 will take the same game in 720p and downscale it to 480p instead. This means that games without any built-in support for 1080i will give older high definition TV owners a standard TV resolution. IGN has tested Resistance: Fall of Man, NHL 2K7, Tiger Woods PGA Tour 07, and Need for Speed Carbon and found they all shifted down to 480p.
Sony has yet to make any public statements about the issue, fans remain hopeful that it might be resolved in a firmware update or future revisions of the console.
Source: IGN