Eurogamer this week.
Notably, the source stated that backward-compatible PSOne and PS2 games would be stored locally on PlayStation 4 consoles and recreated via emulation. The claim runs contrary to Sony's previously announced plans to offer PS1 and PS2 games remotely via its PlayStation Now streaming service. According to Eurogamer's source, Sony still plans to make legacy PlayStation 3 games available via cloud streaming on the PlayStation 4.
The source additionally claims that Sony is working to ensure that backward-compatible games are optimized for native HD resolutions, eliminating the blurred upscaling seen in emulated releases on the PlayStation 3. We've reached out to Sony for comment regarding these rumored features, and currently await a response.