Instructions
Select "Settings" from the PS3 menu.
Open the "Display Settings" category.
Select "Video Output Settings."
Choose "HDMI" if your PS3 is connected to your TV via an HDMI cable. Choose "Component / D-Terminal" if your PS3 is connected to your TV via a component video cable.
Select "720p" from the list of available resolutions so that your PlayStation 3 displays content in the 720p resolution.