Eurogamer reports that Sony is preparing to develop an emulator for PlayStation 1 and 2 games on PS4 in addition to the recently announced PlayStation Now game streaming service.
A "well placed source" told the site that only PS3 games are currently slated to use Now and as a result Sony is turning its attention to addressing the lack of backward compatibility with earlier PlayStation games through emulation.
Eurogamer writes "we understand that Sony is actively pursuing the ability for older titles to run without the blurry upscaling seen on PS3, suggesting that native HD resolutions are being targeted."
The decision to run games locally in addition to PlayStation Now streaming will benefit gamers as it will allow for better input latency and improved image quality.
Sony will likely reveal any such plans at or near E3 in June. PlayStation Now is set for North American release this Summer.
John Koller, Sony's vice president of marketing for SCEA, has described Now as an "alternative" to the PS4's lack of backward compatibility rather than a solution.