Hitachi looks set to do what we suggested Toshiba needs to with its smarter-than-the-average-bear upscaling technology, as sported by the XD-E500 and integrate a decent upscaling chip into its TVs. Dubbed 'Super Resolution Technology' Hitachi's solution only has one major flaw - it's not planned to be integrated into players or TVs until 2010.
That's a shame because as the image above shows, the results are definitely impressive! Supposedly the tech is smart enough to not only offer pretty impressive clarity improvements, but also differentiate depth-of-field effects and preserve and enhance them. Or in simple terms, the sharpening effect only happens where it's supposed to - blurred backgrounds will stay blurry. Apparently if this differentiation isn't made, the image's sense of perspective can be lost, we'll take Hitachi's word for that one as it does rather make sense.
As well as up-scaling DVD and such similar standard def content, Hitachi's Super Resolution Technology can also be used on HD content, too. Currently Hitachi is using a software solution which it aims to improve before developing a dedicated processing chip to do the same thing.
Alas by 2010 we'll all be living on the moon watching super-high-definition 3D films on the holodeck. Or at least most of us will have Blu-ray players, anyway. Such up-scaling technology, then, will be largely unneeded with most of us getting our content ready-made in HD. Nice try, though, Hitachi.