Last June, Sony purchased Gaikai, the company that was pushing games by streaming compressed video frames. The Wall Street Journal reports that Sony will use this technology in the new upcoming Playstation 4 to stream PS3 games onto it over the air. The report also suggest that Sony will not use the same technology to deliver the brand-new PS4 games but will use it only for old PS3 games. The new PS4 games will still be distributed with the old Optical Disk method.
Previous generations of PlayStation have offered some sort of backward compatibility to games built for previous systems, but the next PlayStation is expected to use AMD x86 chips, which wouldn’t be compatible with the architecture used in previous systems. By hosting earlier generations of games on their servers and streaming them, this could be a way to ensure some form of backwards compatibility despite the AMD chips.
We are really excited to see this technology to work on the new PS4.