Speaking with GamesIndustry.biz, in an interview to be published tomorrow, Sony's Worldwide Studios president Phil Harrison boasted that the PlayStation 3 is the only next-gen console that will reflect the "true definition of HD". According to Harrison, the true definition of HD is a threefold "value chain" (display, content, hardware), which only Sony possesses. In addition, the PS3 will be the only console to support high definition movies (Blu-Ray format).
Technically, the true HD standard includes 720p and 1080i resolutions, so, uh, we think you're wrong, Phil. But if it's ego stroking you're after, than yes, technically, your "HD resolution" is bigger than Microsoft's.