I guess if you have the original game on tray the PS4 send a authorization key to run the same game in Gaikai for free... so at least real BC.

I doubt it will have anything to do with backward compatibility. Owning a physical copy probably won't impact rights to the digital copy, just like now. Just because you own Crysis 2 on disc doesn't mean you get to DL it for free off PSN. That would be my guess, anyway.

The benefit, if you have a good enough internet, would be that you wouldn't have to DL the entire game, you could just play it as you go. It would be awesome if it hooked up with PS+, too, somehow. It would rule for demos. It would also be awesome if they somehow turned it into a rental service type thing, though that would surprise me.

Don't get too excited, people, Sony is still trying to make the most money they can. Keep an even keel and you won't be disappointed.

Not that it should matter to me, my internet is baby bunny speed. Blah.

yea, that's what I imagine aswell

I kind of expected them to do this. But this isn't true bc, for one this will probably be a subscription based service and not a place the disc in a tray and it unlock it. This is based on what Sony has done in the past and that there is a cost to stream. Second don't expect the entire library to be there. The problem with Nintendo VC service will be faced by Sony. Last gen saw a few publishers and developers go the way of the dodo and new developers/publisher may have bought the rights to these IP. Also for developers that went under some other publisher may have bought the IP and the publisher for the original title can block the title to keep their competitor from getting money for a game they have the rights to. (It has and will continue to happen.) Sony cannot just unilaterally digitally publish a game. In the case of games that no one picked up the IP they cannot publish the title unless they buy it in the markets they want to release it. (Because the ownership becomes the bank's who still want to get some of their money back)

This should be viewed as a work around and not true backwards compatibility. It is nice but also limited by bandwidth and data caps in addition to the two above problems.

As for the subscription if they don't expect it to be free, it will either be lumped together with PS+ or they will created another level or two of service. (PS+, Gaikai BC, PS+Gaikai) Each with their own subscription setups.

again, again and again: it is all up to *latency*, bandwidth isn't that crucial.

Yes, latency is important, but for many people, so is bandwidth.

Many people have a bandwidth limit for their internet. If they go OVER that limit, they'll be paying extra per gig or something. But a more important issue than bandwidth is internet speeds. 

My question is do I get to play my disc based PS3 games on PS4.

wait now I'm confused: what is the difference for you between bandwidth andinternet speed? do you actually mean a trafficlimit? to make the experience nice for the user internetspeed is also important but  way more latency. think of an access to the wired via satellite: you'll get high bandwidth but lousy latency and will most certainly not enjoy any streaming service. that's what I meant. 

Yes,what they mean by limit on bandwidth is like you can only download, say, 50 GB during the month, and then your speed is going to go down or you lose internet access entirely. You can see why that would be an issue considering the data going back and forth during streaming. To the point of being impossible to enjoy it.

OT - I expected Sony to do something like this but it'll be an exclusive of PSN+ or other subscription service, I'm sure. Imagine all the PS3 arrays they are going to build. I only hope you'll be able to enjoy your catalog instead of having to buy it all again. Still that's way better than nothing and I applaud Sony for that.

Sony's got teh cell and bluray in their mighty arsenal. They don't need to rely on puny digital distribution for gaming...

Seriously though, I find it hard to believe that they will do PS3 game streaming and stop there. Why not PS4 game streaming?