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I think this is very interesting. What I'm wondering though are a few things:

1) If Gaikai can stream AC Brotherhood at 720p 30fps, then what are the expectations of next gen buyers? Is that resolution good enough for them?

2) Will the streaming console be able to broadcast motion control inputs quickly to the server (I'm guessing "yes", I'm just not sure).

3) Would Sony be able to re-design the PS3 to have it fit a server cluster model, in other words redesign the hardware, remove the Blu-ray player, improve the efficiency and size so as to cluster many in a smaller area? If so, I even see this possible for streaming PS3 games.

4) Will Sony be happy with having a PC-compatible PS4 system architecture? Will there be a need for a whole new PS4 system, or would the PS4 simply need to be capable of streaming and then some other multimedia functions?

5) Thinking PS4 SKUs, would it be possible for Sony to sell a "Streaming Only" PS4 that is ultra-light and mostly just have the ability to read six-axis, move and other input and allow streaming as well as some other multimedia services? If so, this could be really cheap and light-weight.

Also, how would this affect the "Full" PS4 sku, with the whole PS4 next-gen hardware included, capable of reading and playing PS4 media?