Last June, Sony purchased Gaikai, a company that can stream games — delivering them over the internet in real time from remote servers, by sending compressed video frames.
Now, The Wall Street Journal reports what many have suspected for months: Sony will use the service to stream games to the next PlayStation game console, which the company is widely expected to reveal on February 20th.
However, according to the publication, Sony won't necessarily use Gaikai to deliver brand-new games. Those will still be delivered on optical disc. Instead, the next PlayStation will bring existing PlayStation 3 games to the new system using the streaming technology.