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It can utilize 1080 but then you’re limiting visual upgrade because your hardware /TV can’t process 4K , or process the graphic information that the PS5 is pumping out. If and when possible I strongly recommend upgrading to a 4K display you can find some for $399+ and it is a massive visual difference - if you have the funds to invest into a 4K 120Hz display it definitely just bring everything into anew world
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