With Sony's next system expected to move to AMD chips and abandon the architecture that defined PS3, hopes for backwards compatibility were lost. During the transition from PS2 to PS3, Sony had to include expensive legacy components to enable playback of last-gen games. Backwards compatibility was eventually removed from redesigned models, designed to be cheaper.

Although PS4 (codenamed Orbis) will be a radically different system, it will be able to offer backwards compatibility through Gaikai streaming tech--a theory we offered after Sony's acquisition of the company last summer.

Read more: Cost TBD »

Cloud gaming service Gaikai hasn't really made waves since it was bought by Sony in July. But now the company is facing a court battle with Delaware-based T5 Labs, which alleges that Gaikai infringed on its patent.

Read more: T5 says it sent notice of infringement »