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They won't go software only, streaming will allow them to make cheap hardware that they can stream their higher quality games to. No hardware refresh, no cell bb chip, no nvidia video card, no media drive, just a thin client like device and the tv of your choice.

Looking at how expensive this gen was to R&D the PS3 I can't blame Sony if this is the plan they roll out next gen.

A cheap thin client for $199 with a controller, and video cables out the box. Games, video and music services are streamed to you, your library of music, video, and games are stored on a server, simple and I'm all for it.

 

Refreash the brand, drop the number digits, and call it PlayStation Air or some crap. Streaming is the future.