PS4 to stream PS3 games via Gaikai cloud streaming

According to a report from the Wall Street Journal, Sony’s next PlayStation, which is expected to be announced on February 20th, will use the cloud gaming service Gaikai to stream PlayStation 3 titles over the internet to the PS4.

Sony Corp. 6758.TO -1.87% is planning to offer technology to stream games to its next videogame console, people familiar with the company's plans say, alongside other enhancements to bolster its position in the market.

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.

The streaming technology is one of the new features and enhancements expected to be offered with the new console, which Sony plans to unveil at an event in New York. Sony's new PlayStation, for example, may control the action with higher fidelity cameras for its "Move" motion-sensing technology and touch-sensing pads on new controllers, according to people who have seen and been briefed on the devices.

Still, Sony is pushing ahead and has been investing heavily to prepare Gaikai's service, people familiar with the matter say. Microsoft also has experimented with its own version of cloud gaming, people at the company have said, but has in the past questioned the costs associated with building a service large enough to reach all its customers.