It's simple evolution of technology. 

Ultra high speed broadband is spreading and once it's available to everyone, you can basically stream any type of video game, even at 4K resolution. 

Hell probably 8K resolution if you wanted. 

With zero hardware cost other than the controller. 

Screw you! All aboard the upgrade train!

were prob going to have upgrades every 2 years like ps4 to psneo, but all the big 3 are going to do it,not just Sony. PSNeo is just the start

if thats the way it goes, im not going to like it xD

Or you will spin it after it doesn't happen. "Well it didn't happen with NX but it will definitely happen with the next console. You just wait". Calling it now.

1 gigabit internet speeds becoming common place = end of the need of physical hardware.

I think there probably will be a physical PS5 for people who absolutely need it, but it will be optional.

There will be no PS6 period (physically).

Services from Sony, MS, Nintendo, and gulp maybe even Netflix, Apple, and Google will compete against each other.

PSNow is the first baby steps to this, but that baby is eventually going to grow up. 

Nintendo will continue to make handhelds probably for a little while longer, but traditional home consoles will cease. 

A new generation for them, because they won't be the first ones to release a 9th gen console.

The PS4 is doing really well, Of course, there's gonna be a PS5.

The question is not that, what Yoshida is talking about is whether or not there *needs* to even be a PS5. 

Google basically has sent into motion a change of events by pushing Google Fiber, they have forced AT&T and Comcast to start offering fiber based or ultra high speed internet. 

Ultra high speed internet allows for any type of game to be streamed easily even at 4K resolution. 

Once this becomes common place .... bye bye physical home consoles. No one is going to pay $400 for hardware when they don't have to anymore. 

Playstation 4 is not the future. Playstation NOW is. 

Doesn't America have the worst internet infrastructure of the 1st world countries? Do you realize how long it's going to take to upgrade all of America's internet offerings so that everyone here can have access to speeds like that? There is no way the US will be ready for a streaming based device like this in the next 5 years. It's fine for things like Netflix, because latency isn't a problem when you're passively viewing something, but if you have to controller-responsive speeds, then it's going to take some time to get there. I don't see Sony or anyone making the move to streaming-only consoles for at least a decade.

It's improving rapidly because Google Fiber has lit a fire under AT&T and Comcast's sorry asses by offering Google Fiber in several markets, that scared the shit out of AT&T and Comast and now they are starting to rapidly offer ultra high speed internet and the competetion is going to lead to an inevitable scenario where it's available everywhere and the price comes down. 

For example, AT&T is offering Gigapower in 38 more US cities this year:

http://www.computerworld.com/article/3012268/networking/atandt-gigapower-fiber-expanding-to-38-more-cities.html

It's actually not unfeasible that all major US cities will have fiber or ultra high speed in 4-5 years time, by 10 years the entire country will have it.