Antiwhippy
the holder of the trombone
This has been inevitable for a while, and only more so once the leaked specs came in. It's too expensive to do hardware-based backwards compatibility (if PS2 components in the PS3 for hardware-based BC ended up being too expensive, the PS4 having Cell had no chance), and presumably that is part of the reason why they bought Gaikai.
Thing is gaikai is going to be severely limited in places with slow internet and bandwidth caps, like Australia.