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Yes thats right. You can change this in the settings. Bitstream sends the audio to an amp/receiver in its encoded form. It is then decoded by the said amp/receiver. PCM or LPCM means the PS3 decodes it onboard and sends the decoded sound to the amp. Difference is is that if the amp does the decoding it will display what sound you are listening to e.g. DD, DTS. If PS3 does this then the amp will not recognise what the sound format is, it will just direct the sound to the relevant speakers and display as Multi Ch IN or similar.
Cheers
Saf
Edit: The old phat PS3's cannot bitstream HD audio, its a hardware issue which, despite what some may have thought, cannot be rectified with a firmware update. This is why if you have an old style ps3 and want HD audio, you must set it to PCM. The slim ones are able to output HD audio via bitstream so then its up to you which way you wanna go about it! |
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