It may be that other modes on your TV are upscaling the resolution or performing some other post-process rendering, and Game mode simply turns this off. My PS is attached to a Samsung TV where rendering the upscale can't keep up with games causing lag, stutter etc. which goes away in Game mode.
I also have stuttering issues in ACC on my PC despite maintaining decent frame rates. I have read this is an effect of the unreal engine on older CPUs (I have an i5 2500k) which makes sense as even dropping all the graphics to lowest settings doesn't get rid of it... I have an older Sharp TV for a display and although it definitely doesn't do anything clever like upscaling (it's not a smart TV), I just noticed it does have a Game mode in the AV settings so will try it out... but doubtful it will help as other titles (AC, DirtRally2 etc) run smooth and on much better quality settings. So perhaps the PS version needs more optimisation to meet hardware limitations.
On PC v1 should have still been early access the game was broken. Although Kunos have updated it alot, I have always this game was incomplete, especially as far as multiplayer goes. So not surprised console version has issues.
I wish I had more time to dedicate to mastering the intricacies of the game because the driving feel and dynamic environment is great. Even tuning is more intricate because these things are so sensitive to aero, which is affected by suspension - they are like stealth bombers! inherently unstable and only keep flying because of all the electronics
Anyway hope they sort out the bugs on PS4 for you guys interested to see how it pans out.
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