Forget backwards compatibility, it sounds like it might not even use a disc drive.

edit: scratch that, sounds like disc drive is confirmed? The stuff they were saying in the conference made me suspect otherwise.

So with all the NEW ps3 games coming out this year, what's the point in even getting them if you can't play on the ps4. I don't know, maybe it's just me.

I kinda figured that BC increases the life of a console. If the console had BC there's hardly be any used games out there because there would be a reason to keep them.

Obviously yes. It's mandatory. I've been well aware Gaikai will be the only option for BC but there needs to be concrete details about it. It needs to be at launch or at least in the first year. I plan on keeping my PS3 anyways and I have a PS2 since my PS3 isn't backwards compatible case in point no BC will not effect the PS4 at all since how the PS3 took off without BC but yes eventually I need the option to play PS1, PS2, PS3 and PS4 all on one console. Plus its just badass.

Yes.

They've started with BC on every console.

I knew it wouldn't be able to play physical copies, but digital too? Almost a deal breaker for me. Depends on how well Gaikai works.

Since we learned of the different CPU no, but I had been hoping Gaikai would at least be ready on release for PSN emulation. But it seems we may have to wait a good long time before PS1/2/3 games are playable, much less how much it might cost extra.

So if the 720 doesn't have B/C,  you will ignore both consoles?

BC is a system seller.... imagine kids growing up and telling their parents... i want ps4!!!!
parent: why not an older and cheaper ps3?
kid: ps4 can play all play station games!!!!!!
parent: sold....

that's how i got my ps2 when it came out...

I agree that BC is important to the family/casual segment. My kids play the Wii titles I have as much as the Wii U titles. I did move the Wii upstairs but at 7 years old I'm not sure how much life it has left. So for the time being they can Just Dance upstairs or down and in a year or 2 they can still Just Dance even after the Wii dies. That's pretty nice. Of course if it died I could probably get a used one for $50 or so but that's a pain and costs more money.

Considering the failure rate on X360 and to a lesser extent PS3 and their higher cost that's even more a concern I would think for those parents if there is no BC. A family maybe has 15 or fewer titles and would like to keep playing them and the 15 or so they end up getting on the next generation. That family may not be the most critical customer at first if Sony is selling at a loss, but it may become one if that family's kids become the next fanboy that buys 100 titles and never switches.

If that ecosystem effect is gone it's also easier to switch between 2 consoles. So if someone is 50/50 between PS4 and X720 but already has a PS3 then with BC it's far more likely they lean PS4. Take away that link and there is no reason not to switch. If it's technologically feasible Sony should allow the PS4 to detect the PS3 title is inserted and stream the game for free - in effect giving true backward compatibility versus just having PS3 titles available in some sort of subscription or repurchase model.

I don't think BC will make or break the generation for any one company. If MS also isn't backward compatible it may help Wii U next holiday season as parents decide whether to take the leap or hold out until MS/Sony drop their price since their kid seemed to want PS4/X720 more.

I expected it. And I hoped for it.

It's disappointing, but it's definitely not a deal-breaker for me. It just would have been a nice feature for people who never owned a PS3 and had only enough disposable income for a single system.