1) More than a few games on both the PS3 and 360 are rendered at sub 720 resolution and scaled for output. 2) Did/Do you own the game, and did you look up the rendered resolution because you could ...

I think he is wrong! Im pretty sure most (if not all) PS3 games render at 720p anyway, so should look decent on my plasma. However I recall that launch machines had problems scaling to 1080i or 720p .