The PS3 is the only HDMI 1.3 transmission source announced so far. It's supposed to carry uncompressed PCM, Dolby True HD, DTS-HD Master Audio and SACD through its HDMI output. Apparently, as long as you have HDMI 1.2 at the receiving end, you can get these formats digitally. Since no current receivers decode these formats internally, the PS3 must be converting them to PCM for transmission over HDMI. Now Denon will offer HDMI 1.3 capable receivers and a pre/processor with native decoding of these new formats. Is there a way to get the PS3 to send these codecs in native format? Does the PS3 automatically convert these codecs' data streams to PCM for transmission through HDMI? What about SACD? Does the PS3 transmit native DSD through HDMI? Does it convert DSD to PCM prior to transmission? That would be bad. If DSD is passed through HDMI 1.3, wouldn't the receiver have to do DSD D to A conversion? PS3 supposedly passes SACD to HDMI 1.2 receivers. Is DSD converted to PCM here too? We need more
Denon’s ’07 AVRs Will Feature Integrated DTS-HD Master Audio And Dolby TrueHD

Pictured above is Denon's irrepressible Jeff Talmadge with a masssive AVR.
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First, its is inly HDMI 1.3 that can send or receive Dolby TrueHD and DTS-HD Master Audio in their native digital forms, not HDMI 1.2. For now, the PS3 is compatible only with Dolby TrueHD and not DTS-HD Master Audio at full res. By that I mean when it sees DTS-HD or DTS-HD Master Audio it only decodes the "core" backward comaptible DTS stream at 1.5Mbps. The PS3 can either be set to output "Bitstream," which would pass TrueHD native or you can set it to output PCM. The PCM conversion is not automatic. I don't know if DSD is converted to PCM over HDMI, but in either case the DSD stream would be converted to analog at the AVR or pre/pro at the other end. As I said in my review of the PS3, I don't consider it a solid option for an audiophile and recommend a standalone player for anyone seriously interested in SACD.
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