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Better Graphics
The PlayStation 3 supports a maximum resolution of 1080p, allowing you to access the best possible picture from your games, videos and even online content. With an HDMI cable, you can read text better as well as enjoy HD detail and colors on your screen when playing games. The Blu-ray player on the PlayStation 3 is at its best combined with a high-definition display, and streaming video from services like Netflix and Hulu will look better via HDMI.
Simplified Cable
HDMI transmits both audio and video and is a single connection; the AV cable for your PlayStation 3 must use three RCA plugs to connect to your TV. AV cables tend to be bulky, and the one for the PlayStation 3 uses a specialized connector that cannot be used with other products. HDMI cables are standard across all high-definition devices; if for whatever reason you no longer need the HDMI cable for your Playstation 3, you can use it for another device.
Greater Display Options
Using the HDMI setting on your PlayStation 3 gives you more options than you have with your composite video settings. You can set the definition of your video, from as high as 1080p, to 720p and as low as 480p. There's also the option to choose between an aspect ratio of 4:3 and 16:9, although most HDTVs are designed for 16:9. Composite offers fewer options, as standard definition television offers fewer display nuances. You can also change the depth of your color settings when connected via HDMI.
Compatibility
Chances are that your HDMI cable will continue to be compatible with new models and manufacturers of televisions in the future. If you connect your console to a new television, you won't have to replace the cable. For instance, the PlayStation 3 supports Blu-ray 3-D. Even if you don't currently own a television that supports 3-D playback, you may in the future. HDMI cables are compatible with 3-D televisions.