If you remember correctly, and I’m sure you all do, last June, Sony went ahead and purchased Gaikai. Gaikai is a company that can stream games using remote servers. By sending compressed video frames over the internet using these servers, you can easily stream games. For months, many have suspected that Sony will use Gaikai to stream games for its upcoming PlayStation 4. According to a report by The Wall Street Journal, this indeed appears to be the case. However, Sony won’t use Gaikai necessarily to stream new games. Oh no. Instead, the PlayStation 4, or whatever it ends up being called, will stream PlayStation 3 games.
Because the PlayStation Cuatro is expected to use AMD x86 chips, the architecture it will use will not be compatible with the architecture used in previous systems. As a result, there won’t be a dedicated chip for backwards compatibility. By using Gaikai, Sony hopes to ensure some form of backwards compatibility, despite the AMD x86 chips.
As for exactly why Sony might not stream new PlayStation 4 titles, it all comes down to the current infrastructure. Streaming services like Gaikai and OnLive have only been able to deliver a maximum resolution of 720p, and even then, to reliably stream such a resolution requires not only a very decent internet connection, which a good chunk of the United States still doesn’t have, but also servers that are pretty close to the destination. Gaikai had previously only been publicly used to stream PC games instead of console titles. At this point, all eyes are on February 20th as Sony is expected to reveal the next PlayStation.
Source: The Wall Street Journal