Backwards compatibility is coming to PlayStation 4, and PlayStation Now is only part of the story. A well-placed source working with Sony's streaming service reveals that only PlayStation 3 titles are currently scheduled to use the "gameplay over IP" cloud service. PS1 and PS2 titles are set to follow the more conventional route of running locally under emulation on Sony's latest console - but with the possibility of HD visual enhancements.
I hope this becomes what is said. I have some great memories of some PS1 and PS2 games and it would only be better if they were to be played today on Sonys next-gen console, the Playstation 4. Also playing them with better graphics, that'd be awesome.
So this isn't all about PS1/PS2 games ability to be played on Playstation Now, because PS3 games will also be there. Playstation Now, in my opinion, will be awesome, but what will the cost be; how much storage space will there be; and even will this become a success or a waste of money for Sony. Time will tell and so will Sonys way of business with Playstation Now.