General / Off-Topic How Does PS4 Treat 720p?

[Old Duck]

Someday I'm going to take my PS4 over to my dad's place to show him ED. He has a cheaper 720p TV. This got me wondering, how does the PS4 deal with 720p? There are two possibilities I see:

1. It simply generates the image at 720p, which should result in better peformance (higher framerates).
2. It generates the image at 1080p and then downscales it to 720p, which should provide slight antialiasing, since it's basically supersampling.

Anyone know which it is? Does anyone play ED on a 720p TV? If so, can you read the small UI text?

 

[SpaceMachine]

Pretty sure it's number 2.

I've connected my PRO to a friend's old 720P 32" LG LCD and the text was readable - easier with a narrow FoV.

EDIT

I've just tried Elite on my Vita, just the docking training mind, but didn't have any problems reading things even that small!