I've always felt that delaying the PS3 ability to upscale was a business move for Sony.......basically a deal with all the other BluRay Hardware backers.....
if the PS3 had DVDupscaling from the beginning....I really believe there would be very low sales for the other BluRay players......if any at all.....
choice for a person who wants a BluRay player........and has a DVD collection....
$500-$600 PS3.....nice BluRay player, but does not upscale DVDs...
$800-$1000....(non gaming system)Professional BluRay playerthat upscales all of his/her DVD collection....
if the PS3 upscaled it would be a landslide.....
I think it was more an issue of:
a) PS3 that upscales DVD's = Significantly poorer Blu-Ray disc sales
b) PS3 that doesn't upscale DVD's = Significantly better Blu-Ray disc sales.