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Does anyone else have black bars on all four sides of the screen? I do everywhere from the title screen of the collection to the games themselves.
I expect pillarboxing on the sides to preserve the original aspect ratio and would be disappointed if 4:3 and 3:4 arcade classics were stretched to 16:9, but I'm puzzled otherwise why this collection doesn't fill my screen on the PS4.
Selecting full screen in the in-game options doesn't get rid of the black bars on all four sides of the screen. It just makes the games fill the vertical height of the screen between the black bars at the top and bottom of the screen.
I don't really want to re-install this collection to check - I loathe it with a passion due to the never-patched issues with the controls "sticking" when you use the analog sticks - but if it's slightly windowboxed on all sides then that's probably because the devs went for a "nearest multiple" approach when upscaling the image.
Taking "Vanguard" as an example: the original arcade game had a vertical-oriented display at 224x256 pixels. If you're upscaling that to fit a 1080p display then 1080/256=4.2 so the nearest whole divider is 4x - basically quadrupling each pixel, giving you a display height of 1000 pixels ... which, obviously, doesn't quite fill the height of a 1080 pixel display. Therefore you will see a small 20-pixel border top and bottom.
Some devs will choose to upscale the image to 1080 regardless, so it completely fills the screen, but if they do that and the source image doesn't exactly multiply up to 1080 then you get a nasty "rippling" effect on the upscaled image because you're trying to display each pixel as 4.2 pixels and that doesn't match up 1:1 with the pixels on your screen, so any given frame will have a mixture of "fat" and "thin" pixels, giving a rippling efffect.
IMHO, a clean upscale with a tiny border around it is far preferable.