According to the Wall Street Journal, in addition to playing games on blu-ray discs, the next PlayStation console will also stream games over the Internet, including PS3 titles.
From their article:
The new technology, to be unveiled Wednesday along with the new console, will allow users to play games delivered over the Internet, these people said. The streaming service, they added, is designed to use current PlayStation 3 titles on the new console; the new device is also expected to play new games stored on optical discs.
This could conceivably make up for the lack of backwards compatibility, but only if there’s some way to verify past purchasers. If I have to rebuy all the games I physically own for PS3, well. That’s bust.
Also, another shot of the rumored PS4 controller has surfaced (seen in the header image), this time from Digital Foundry. What stands out to me in this shot is the headphone jack, which is at the bottom of the controller (as opposed to nowhere at all, like with Dualshock 3).