According to this report from Kotaku, the upcoming K series of PS3s (apparently shipping to retailers this week) and all future models will require an HDMI connection for HD, meaning it will no longer support HD over component cables.
The reasoning? There's no official word from Sony as of yet, but the only significant difference between a component and HDMI connection is that component doesn't support the (hopelessly broken) HDCP DRM scheme, which allows for greater publisher control over how an image is used (namely, combating recording/duplication), and retailers like GameStop can't be too broken up over the opportunity to sell more $60+ HDMI cables.
The losers, naturally, are good ol' consumers who either a) don't have enough HDMI connections for all their devices or b) have an older HDTV that pre-dates HDMI. As someone who falls into the latter category, the only solution I know of (short of buying a new TV) is to pray your TV has a DVI cable that plays nice with HDMI and HDCP so you can use an HDMI-to-DVI cable/adaptor. For those in the former, well, hopefully you can do some connection shuffling without having to spend too much on new cables.
Otherwise, congrats! The console you likely bought because of all its fantastical HD features is now limited to the same resolution as the Wii! All because, well, frankly I can't think of a good reason for continuing to use HDCP, nevermind making it a requirement.
Fortunately for current owners, Sony has said they have no plans to update previous PS3 models with this requirement (although where have I heard that one before...).
UPDATE: Turns out this will affect movies only, and is the result of the movie industry's insistence on DRMing the bejeezus out of everything they can nowadays. Still a **** move on their part, but hardly something you can blame SCE for. I should've known better than to jump on a Kotaku story like that...
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