You probably have a 720p tv. The tv is simply downgrading the 1080p from the ps4 to 720p. My tv does the same thing and has the switch at stuck at a Max of 720p. Go look up your tv model online and check and make sure its native resolution is 720p. If your tv has a native resolution of 1080p this is an issue that I haven't heard of until now.
Last edited by rileysrjay,