Better late than never. The Evil Within has got a new update that allows console players to rid themselves of the cinematic letterboxing in order to play in full screen.
Console players can now remove the cinematic letterbox and play the game in full screen mode by toggling the option in the menus. Casual difficulty has been re-tuned with more ammo drops and health values for the player in this update
The new update is out now for The Evil Within on all platforms.