Baine said:
I all ready have a HD TV so this wont put me off getting a PS3 however the "mass market" wont all have nice new HD TVs so this could be a bad move form sony
LINK
IIRC it's not mandatory - the hardware has to have the option to only output in DVI/HDMI (digital), but it's up to the content provider if they want to use it.
Apparently the idea is that the movie companies can decide if their film or whatever should be viewable only in HD at 720/1080 via the protected (digital) outputs, with a 480P signal being the best from the analogue output, or not (so a distributor may decide to lock the analogue signal to 480p for newer films, but allow 1080i/p for older films and all games).
Pretty much the same as the way all DVD playback hardware has to support region coding and macrovision, but it's up to the content providers as to if it's actually used (not all do).
One site I read suggests that the fact that it's not a mandatory output limit on the analogues could be used as a pretty good marketting gimmick, as the content providers (Sony, Disney, Columbia Tristar etc) could put on their packaging for Super Violent Funday 3 that it "outputs in HD on all HD sets", which would make it slightly more appealing than the disc you want eequally badly next to it, that does have that limit.
It shouldn't affect games at all, as it's in regards to the options available to movie/TV distributors in the new spec, and shouldn't be needed for gaming (it's to try and stop people copying the movie content, I suspect the gaming companies won't care if you record a clip of youself playing Kill da Humans 12 or Funky Football 2).
Also, apparently it's qute likely that you will be able to get sets that won't support this limitation, as the Japanese consumer protection laws are likely to err on the side of the very large consumer base who have HDTV's with only the analogue inputs in Japan.