In 2012, Sony purchased a little known company called Gaikai. That company has technology which compresses video to enable games to be streamed over the internet (if you have a fast enough connection).
The Wall Street Journal recently published a report which says Sony will use Gaikai to stream PS3 games to the PS4.
Historically, Sony have made their new consoles backwards-compatible with games from older machines (i.e. PS1 games worked in a PS2, and PS2 games worked in a PS3). Rumours are that Sony will not enable that feature on the PS4 choosing to opt for streaming instead.
We expect more details to be revealed about the PS4 in Sony’s event on 20 February
Would you miss being able to play PS3 games on a PS4? Let me know in the comments below.