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Please. Dedicated hardware is not going away anytime soon. If anything things might become more integrated, but there is no reason to believe we won't have physical hardware to support the all in one service they want for a very very long time.

PSNow is a legacy replacement - it's a way to cash in on backward compatibility while simultaneously reaching a broader audience. I'd like to see a shred of proof that even indicates they'll exclusively become a service as opposed to a platform driven first and foremost by the modern iteration of hardware.