My question is simple does PS3 always output HDMI encrypted via HDCP? Because we were testing my screen with a DVI input using a transformer. (It's known as not HDCP supported, though the PS3 does work on it.) Which is great news ofc!
But we couldn't test any games since his PS3 freezes when starting a game, though that is not the question of this topic.
So is the PS3 home also already encrypted with HDCP? or does it switch to HDCP encrypted output once you launch a game or Blu-Ray video?
The PS3 will not display protected video content, especially Blu-ray video, in 1080p; unless all devices connected to the HDMI connection are HDCP-compliant. Lower resolutions, including 1080i, don't require HDCP at all. Most games aren't protected content for video anymore, because the publishers don't care if you record the game video. Lots of people do that to post their gaming sessions on YouTube. Monitors that have HDMI ports usually support HDCP on the DVI port, but many DVI monitors do not support HDCP.