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Darvond: I'll take a third option: Windowed Mode.
That's just a special case of keep aspect ratio.

Ancient-Red-Dragon: Nothing is worse than black bars. I'd probably never play games that force me to have black bars on screen. I wouldn't watch films that do that either.
SirMrFailRomp: What do you do when watching movies on a 16:9 screen? Most films are shot in an aspect ratio wider than 16:9 and will (should) be letterboxed on a normal TV.
That was my question too.

So, back in the day (i.e., the Nineties), you would prefer to watch a pan & scan video rather than a letterbox widescreen, because the black bars turned you off? Did you realize that the pan & scan chopped off the sides of the projected image to make it fit 4:3? So if the action in the movie happened in the edges, it was not shown?

I'd prefer to see the whole image, even if that meant it was shrunk, rather than miss a bit of it.
Gudadantza: […] In ScummVM it is easily comparable on the fly with the combo keys control+alt+a to switch between modes. […]
Good to know, thanks. :)
amund: I don't understand why 16:9 got so popular
timppu: I presume it was because DVD-movies, hence TVs, hence gaming consoles, used it? So PC eventually kinda had to follow suit.
This is what I'm thinking too and mainly consoles because for a while the PC market was considered dead and focus went on consoles. Gaming on a TV is a very different experience. I think 16:10 is great, if you get black borders it's top/bottom, having it on the sides would be distracting and can easily use it with non-gaming stuff that has a lot of text.