It's no secret that Sony bought the Gaikai streaming service a while back and that we would see the streaming service return some time after the Playstation 4's release but I don't think many people expected an announcement so soon. Sony has just announced its new Playstation Now service which will bring older generation games to the Playstation 3, Playstation 4, PS Vita and Sony's new line of Bravia TV's, the service will also eventually hit smartphones and tablets.
Much like the struggling On-Live service, all of the computing is done in the cloud meaning that your controller input has to travel through the cloud, get processed and then the action will be streamed back to you. Unfortunately, this method didn't work very well for On-Live and the service was riddled with input lag and low quality video but Sony has implemented some restrictions to try and help maintain a decent level of quality for all Playstation Now subscribers.
Games will be streamed in 720p only and you will need a 5Mbps Internet connection, all game progress will be saved in the cloud so you can always pick up where you left off and multiplayer will be possible even with gamers playing from a disc rather than the cloud.
Pricing for the subscription based service has yet to be announced and we don't know anything about the games due to be on offer but we do know that titles from the PS1, PS2 and PS3 will be available.
KitGuru Says: If it works then this could be really cool but I think many will remain sceptical until trying it out for themselves.
Source: Sony Blog