But I've been playing games in SD. We're going through Final Fantasy X right now.
So, what you're saying is, HD games look worse in SD, than SD games in SD. So we're not making an improvement so much as switching formats in technology.
No, HD games don't look worse, HD games have details that can't be seen in SD. By and large the image on screen is going to look better, but important gameplay details my not be easy to see on an SDTV. Ever try to play a computer game over composite video output? My sister did when she first got a laptop. She loved Roller Coaster Tycoon, and wanted to play it on the big screen. Couldn't read a single word of the smallest type in the menus, even after dropping the resolution to 800x600. The game would have been unplayable if she didn't already know what those text boxes said. RCT is a game with 2D bitmap graphics,
that came out in 1999.
Another example, going from SD to SD. My old computer monitor had an S-video input and I'd been using that to play my Gamecube on. When that monitor died, I switched back to using my TV, which only has an RF connector, and I have to use an RF converter to connect even composite cables. I could barely read the menus in X-men Legends 2, and that's not a game that was designed for HD.
And if you're playing a game with little to no text to read? Well, consider this. 640X480 (roughly the amount of pixels that can be clearly displayed on a good quality SD screen) is 307,200 pixels. 1280x720 is 921,600 pixels, 3 times the resolution.
L4D2 isn't a PS3 game, but let's play Spot the Zombie. I took some screenshots in L4D2, at the resolution I play at 1920x1080, and then scaled them to approximate lower resolutions:
Here's a Smoker, first scaled to 720p, then 480p and upscaled to match size:
No big difference, right?
Well, here are screenshots of a Spitter, farther away, but still close enough to launch spit at the team (if it were human controlled in Versus):
1080p (not a resolution that PS3/360 games are actually rendered at, but to show the orginal view)
720p upscaled
480p upscaled
Note that while you can see the Spitter in all 3 shots, the glowing green that is the Spitter's trademark is only visible at 720p and above. Being able to see that green glow isn't a matter of eye candy. (The Spitter is
ugly and I avoid seeing them up close.) Spotting that toxic mucous at a distance can be the difference between taking down the Spitter first, or standing in a pile of luminescent death.
Not only that, but my first batch of screenshots came from a different level, Hard Rain in the middle of a storm with lots of weather effects. The zombies (witches, boomers, jockeys, etc.) were visible at 1080p, but couldn't be seen at even 720p. So I had to fire up the game again and switch to a level with better lighting.
Higher resolution isn't just to make a game look better, it's to make the games actually play better.
EDIT: Now, I'm not posting all this to say you shouldn't get a PS3 if you don't have an HDTV (though I would advise against it if you don't have at least an S-video input on your TV), but I do want to show that higher resolution serves a purpose beyond just looking better.