via twitter translate:
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SIE PS5? Make a note of the patent information.
-A large number of game titles across PS1/PS2/PS3 and various generations of game consoles can be stored and used via the cloud gaming library.
-These games can be run on a virtual machine that mimics the operating system associated with each game console.
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Seems to imply that different virtual machines (PS1, PS2, PS3) can run on the PS5, and run those games, but games will be downloaded from servers on the net? No disk based games?
Anyway, if they offer backwards compatibility, that would awesome.
Going forward, it becomes cheaper with every generation to be able to do this.
Virtual machines help enforce compatibility as they have their own enclosed memory space that should match the original machine.
No disk based games, may mean that Sony wants you to re-buy any game in your library in order to play it. Smart from a business perspective, but a lot of people would be upset by this.