What is It?
PlayStation Now is a cloud-based solution to playing older games. If there's a game that you can't locate on an older system, just hop on the PlayStation 4 and play it over the Internet. The big deal here, though, is that it's not limited to the PS4. You'll also be able to play Sony's back catalog on the PlayStation Vita and PlayStation 3. In an unprecedented move, you'll also be able to play the games on Bravia televisions, smartphones, and tablets - no system required.
How Does it Work?
In the summer of 2012, Sony acquired Gaikai, a company that specialized in server processing and streaming games, aka cloud gaming. With this technology, all the hard work, processing and storage is done on far away servers and streamed, via the internet, directly to your display, no local console needed, no downloading and there's no installing. The catch here, though, is two-fold.
First, some Internet service providers place monthly data caps on their customers. This could be a huge issue for heavy users that have ISP's that cap, as PlayStation Now will likely use a tremendous amount of data...
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