Expanded color palette mode on the PCE/SGX This specific effect only works on
composite (or RF) of the original consoles: no RGB or s-video mod.
This is based on the same effect as
CGA composite artifacts, and is specific to NTSC signal only.
Since the mid res mode (7.159mhz) is double the color burst frequency, you get direct artifacting between two signals ( Y and C). The trick here, is to turn
off the PCE's XOR color burst alternating bit (this bit removes the artifact for still/non moving screens).
Two things to consider:
1) The color burst is still XOR going down the screen, but just that it doesn't swap on the next frame. Your dithering will have to compensate for this (pretty sure vertical line dithering doesn't work for this, so XOR checker board dithering is needed).
2) I haven't found a way to directly control which 'phase' you are in, on start up (two phases: blue slightly cool tinted or slightly warm tinted). IIRC, you can switch/change the phase by enabling and then disabling the XOR pattern bit on the VCE for a single frame. So this requires user input from a visual aid, so the program will know (exactly like the Coco 1/2 red/blue mode, except you don't need to reset the console).
Unlike Genesis dithering (in either res mode), this appears thoroughly solid.
So you get more colors per tile, for averaging dithered 16 colors, and you get colors outside the default 512 master palette. Limited, but a cool effect. Could be great for doing a raycast style engine (since the screen doesn't scroll), or some other demo effect.