Sony is combining the power of PlayStation with the network capabilities and infrastructure of Gaikai, the streaming company Sony purchased last year for $380 million. With Gaikai, the PlayStation Cloud service will allow for backwards compatibility and, but not native to the PS4 hardware.
Instead, gamers will be able to stream PS1, PS2, PS3, and PlayStation Mobile games over the internet. No specifics have been revealed, including pricing, a date for the service, or if it'll work on the PlayStation Vita. That said, David Perry, CEO of Gaikai, said that the PlayStation Vita will become the "ultimate remote play device," allowing users to swap a PS4 controller and a TV for a PlayStation Vita, not unlike Nintendo's Wii U.