What does the “LCD TV” option do in Okami?

Question

According to the manual:

Video Output Change the TV type (standard TV/LCD TV).

Google reveals a mix of guesses and clearly wrong answers. Actually changing the option causes no discernible difference on my (plasma) TV with the Wii version. Is there an official or tested answer?

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My current working theories are:

1. It's a vestigial option that did something on PS2, but isn't needed on Wii,
2. it turns on progressive scan, which I can't usually notice, or
3. it somehow corrects for display lag, which may or may not be more prevalent in LCD TVs.

My corresponding actions would be:

1. Don't worry about it.
2. Turn on LCD mode so that the part of my brain that might notice will be a bit happier.
3. Not sure.

Answer 1

Apparently, it alters the rendering slightly in an attempt to compensate for the visual differences between LCDs and CRTs.

Plasma TVs, of course, act differently from both of those, so it's going to be somewhat subjective if you prefer one setting or the other. If you don't see a difference in-game, just ignore it, since the changes are going to be relatively minor anyway.

(By the way, your theory #2 would fall under theory #1; progressive scan is toggled in the Wii settings, not on a game-by-game-basis.)

Answer 2

This option exists in my PS2 version of Okami, too. Here, it also seems to do nothing at all -- or the effect is too subtle for me to notice, even when I'm looking carefully for it.

The PS2 generally uses a different mechanism for enabling progressive scan, apparently, which makes it seem unlikely this option has anything to do with that.