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Could they do something like basically just sell the PS3 chip in a smaller casing (no need for a HDD/disc drive) and have it connect to the PS4 via a USB 3.0 port ... and voila ... PS3 games? Charge say $100 for it?

Truth is though does Sony even want backwards compatibility? The PS4 is having no trouble selling without it, and by not having it they can remaster those games and sell them again or provide them through their PSNow service, which you will of course have to pay for. I don't see the motivation for Sony to really provide this.