The Sony scales 1280x720 and 1920x1080 without issue, and automatically detects what type (16-235 Limited vs 0-255 Full) of signal it is being sent, and displays both correctly automatically. This does not exempt the 360 from needing to have its color space setting set to YCbCr709 to prevent the image quality from being washed out.
Xbox 360:
Xbox One
The Sony automatically detects what type (16-235 Limited vs 0-255 Full) of signal it is being sent, and displays both correctly automatically.