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VGKing said:
It would be great if PS4 lets me install my PS3 game to the hard drive and then a virtual emulator plalys the game through Gaikai or something. This way it wouldn't really use that much bandwidth as you wouldn't be streaming full games from the cloud.

it's a video stream - the gaikai servers calculate the game and encode a video they send to your device, which decodes the video and sends your control inputs to the gaikai servers