The PS Vita TV by itself supports a resolution of up to 1080i, but what about when it’ll play PS4 games taking advantage of the remote play feature?
Sony Computer Entertainment Japan and Asia Senior Vice president and Director of Business Unit 1 Masayasu Ito answered exactly that question in a recent interview on Famitsu.com:
It’s being developed to be able to output in 720p.
So there you have it: Ito-san doesn’t explain why the resolution is limited to 720p. It could be due to wi-fi bandwidth limitations or to the video capture and compression chip on the PS4. Your guess is as good as mine there, but considering the lack of any visible lag we saw at Tokyo Game Show, i’ll definitely take the 720p limitation and be happy with it.