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It remains to be seen how well this service will work. Even a little lag will make many games unplayable. One difference in the model is the rental aspect - which will allow people to rent games for periods ranging from 4 hours to 3 months. I’m not sure that I would like to not own a game that I like, and have to pay for it again periodically if I wanted to play it only occasionally.
Where the Sony model could excel is allowing software that was made for older console generations to be played via streaming. This could open up a huge back library of PS2 and PS3 games to PS4 owners.
I think the Playstation Now model has promise, but I’m not sold on a digital only gaming world. Then again, I haven’t bought a new DVD in years, so maybe it just takes some time to accept the new paradigm. If the next gen systems ends up being essentially streaming hardware, it could keep costs down and broaden the market for consoles. I’m just not sure that I’m ready for it.