Oh, cruel fate! The PlayStation Camera – previously known as the PlayStation Eye – can't be used to create a PlayStation Network profile picture for the next-gen PlayStation 4. Although having your real name displayed is happening, the only way to pull real-world photos of yourself for the profile pic is through Facebook integration. We speculate it has to do with Facebook's anatomical detecting algorithms.
For those who don't have a Facebook account (or don't want to use it), they'll have a selection of Sony avatars available, like things are now for PlayStation 3 and Vita. Also, if somebody wants to be your PSN friend, searching by your real name (even if you've selected to use your real name) won't be an option. To find you, they'll need your PSN ID. So, please try to keep it simple. You know who you are, xXxZOMGPUPPAYZxXx.