MYTH: Upscaling improves video quality
It doesn’t. Scaling on the console can avoid compatibility problems with rare TV’s, but other than that, there is absolutely no benefit whatsoever. Most TVs scale internally and whether the console or TV does the scaling doesn’t affect the end results. In fact, it’s better that the console does not upscale as that can result in actual quality loss due to double scaling, where the game renders at one resolution (e.g. 720p), the console upscales to a second resolution (e.g. 1080p), and the display downscales to the physical display resolution (e.g. 1366×768). Since scaling is almost always a lossy process, this should be avoided.
And no matter what you name the scaler chip or how you try to spin this, it doesn’t change the facts.
I suspect that upscaling DVD players are slightly different in that they typically achieve small quality improvements by doing wavelet decompression and post-processing at a higher resolution rather than just doing a simple upscale.

The 360’s “secret weapon” or a strong dose of FUD?
MYTH: User created content = Hobbyist game development
Hobbyist game development is a noble effort but often takes months or years of highly skilled and well coordinated effort. I applaud the people behind Darwinia and the legendary Counterstrike, but those are rare achievements by professional quality groups. Developing anything beyond extremely simple games at the hobbyist level is often wildly impractical.
User Created Content includes uploading YouTube videos or Singstar videos or making a game level, and other more practical avenues for user content creation.
MYTH: PS3 is harder to develop for than other consoles.
Remember Oddworld: that legendary PS1 developer who was extremely outspoken in criticizing Sony’s PS2 development tools and dramatically switched to exclusive development on the Xbox? Remember how the media extensively cited this as proof of all kinds of problems with the PS2? Well, did he prove his point by delivering even more successful titles with his new dev tools of choice while the PS2 failed miserably as he predicted? Or did the PS2 achieve phenomenal success while he went on to criticize Microsoft and ultimately bitterly resigned from the industry?
Programmers are notoriously opinionated on toolsets and technology standards. Some programmers love the PS3, others hate it. Most game developers respectfully keep their political opinions to themselves, but the ones that don’t are heard the loudest.
MYTH: Cross-platform titles are more profitable than platform exclusive titles
If the investors and owners of game development studios believed this, every last third party developer would stop developing all exclusive content immediately. That is not happening.
Just to name some recently released big name platform exclusive titles that were developed by completely independent third party developers:
Gears of War, Resistance, Okami, Bully, Final Fantasy XII, Yakuza, Lost Planet
There have been huge headlines about big name exclusives going cross platform (VF5, Assassin’s Creed, Obvlivion, GRAW), and most journalists have extensively proclaimed the third party exclusive to be dead, but that doesn’t make it true.
There are plenty exclusives in active development, and while some will surely go cross platform and make big headlines, many will remain exclusive.
MYTH: Playstation games are all about graphics while Nintendo creates more original games that focus on gameplay.
Nintendo has created some amazing content and I don’t want to discredit that, but the PlayStation consoles have also delivered on more than just GTA and God of War. For example:
Quirky + Casual Katamari Damacy. LocoRoco
Music Rhythm Of course Guitar Hero I + II. Also Beatmania, SingStar, Amplitude and Frequency, Taiko Drum Master, and Parappa back from PS1
Cater to Non-Traditional Gamers or younger players Ratchet & Clank, Jak & Daxter, Sly Cooper
Original Concepts Ico. Shadow of the Colossus