If it can let me emulate NCAA Baseball 05 (yeah right)....I'd jizz in my pants....

Report: PS1/PS2 Games Coming to PS4 Via Emulation

A report coming from Eurogamer suggests that Sony will bring over PlayStation 1 and PlayStation 2 games to the newly released PlayStation 4. The new-gen console isn't equipped to handle backwards compatibility and the report says that it won't be using the recently announced PlayStation Now streaming service, instead opting for emulation.
According to Eurogamer's "well-placed source," Sony is looking to bring older titles to the PS4 via emulation similar to how it brought PS1 games to the PlayStation 3/Vita and PS2 games to the PS3 using software emulation and PSN. Except in this case, the legacy titles may look even better by running the game in HD native resolution, Eurogamer suggests.

"Assuming this intention carries through to final code, we'll be seeing an effect similar to the resolution scaling seen on unofficial PC emulation of Sony's consoles, as well as a great many of the 'HD remasters' we saw on PS3 – where original assets were rendered at a higher resolution, often without any actual remastering at all."

PlayStation Now will initially stream PS3 games with PS2 and PS1 games down the line. It'll be interesting to see if Sony will indeed use emulation to cater to the core PS4 audience as emulation should offer a better gaming experience over a cloud streaming solution.

Source: Eurogamer