Here is my thread from last year in October:

The theory is that Sony approached Gabe a ways back and made clear their intentions for their future console. Sony would go online distribution, and they asked for Mr. Newell's help. (Maybe)

Everything makes so much sense from that standpoint.

1) Cuts out the middleman gamestop, removes a big part of their revenue problem, used games. Will be able to offer games at a reduced rate. Have 'steam' sales
2) Allows them to save on next gen hardware. They don't have to be cutting edge, because the cloud will do all the work.
3) Anti-piracy straight from the server. Of course, there will always be hacks and pirate servers.
4) Allows them to focus more on their content.
5) Allows them exclusive ability to go third party without really going third party. They can put their high content games on ios, android, EVEN XBOX and WiiU, while the reverse cannot happen.
6) Gives them a transition back into their pc business, which Kaz said was a major component, also their phone and pad business.
7) Saves on all major secondary costs such as shipping, boxing, distribution, storage
8) This can all be done straight from their current hardware. No need to improve. Which means, if 360 makes major upgrades, it will be by itself, while ps3 and wiiU are able to run similar quality levels, making those two the major multiplat and base console devs choose over the fledgling 720.
9) Full backwards compatibility spanning all their systems.

Anyhoo, to summarize. I'm not expecting to see any huge hardware from sony for the ps4. I believe we'll see something similar to Onlive in the Orbis. We may eventually see a new fully fledged console out at some point, but the point is that they may not need to improve on the ps3 very much. A console with say a 20% power boost over ps3, that can use the vita in a similar setup to wiiU and upgrade all current ps3 offerings would be ideal. In this way, they can still sell boxed games for offline play, people looking to maximize responsiveness/own/collect/whatever, while simultaneously being able to offer a 'high-res' version of their game over the same console through the cloud.

Your face when this is the xboxone.

1) Exactly why gamestop stopped carrying the one.
2) Instead, they added kinect.
3) yep
4) yep
5) Yep, except the reverse, obviously (and not xbox wiiu)
6) Yep, which is now the windows experience. Pushing back into windows, and windows phone. Just look how they're making indies develop so that the games can work on phone and pc.
7) would have
8) Yep. They took the option of a lesser increase, relying on the cloud to provide the guns.
8) yep.

Wow. In predicting the next sony console, I predicted the nextbox.

You better not keep predicting. We still have a score to settle.

"9) Full backwards compatibility spanning all their systems.

I didn't think Xbox One and PS4 were backwards compatible at all? Not counting any potential digital service anyway?

But, nice job I guess .

Nice job on the predictions, now i know I can't bet with you as you will probably win

Prof next Pachter confirmed?

An interesting story, indeed.

haha I make a lot of bad predictions too, but mostly because I like to tempt people into betting with me.

I see, maybe one day ill have a bet with you then 

Wow, fantastic predictions! I predicted that MS would make the most powerful console and sell at the biggest loss but I was completely wrong. :(

Oh and I forgot to mention the whole part about how they have one of the lead designers of steam on the windows team now. Goes hand in hand with the prediction, except I said GabeN.

To be sure, I would have bought this console. However, I didn't predict the kind of DRM they were suggesting. It would have all been possible without such weighty precautions, and ultimately, would have prevented the One80.

Major problems with their approach include:
1. Taking a cut of used game sales for themselves.
2. Not allowing Gamestop to price their own games.
3. Requiring Windows Azure to be integrated with Gamestop.
4. Interfering with individual resellers.
5. No steam sales (at least, never explained until after the One80, where the explanation simply came off as "your loss, consumers")

That is awesome!  You are a great little innovator.  And all this time I thought you didn't like MS.  Clearly, you either work with them, or they listen to your amazing future wisdom.

And as far as #7, you are also correct in many ways with this.  As ALL games can be purchase digitally on day one with the Xbox One.  I think that is a big reason that GameStop hates them.  The ironic thing is, now after the DRM adjustment from your console and ID to the disk itself, then more people will just buy games digitally.  The campaigning will ultimately hurt GameStop more, and possibly lead to them closing.

The Video Stores are gone, the Book Stores are gone, the Music Stores are gone, well for the most part.  There are giant ones here an there, but mostly they have switched to online and/or digital.  I just don't see how Video Game stores are going to survive.  The DRM before was a much better situation for them, because it was the same experience for the consumer.  Now, digital games offer a better service and are easier to use.

And now it's worse for them, partially because of what they did to make a change in policy.  I would laugh, but I'm not like than, and I like going to GameStop.  I will miss some of the midnight crazy launch fun.

Looking forward to your next prediction.