One of the most talked about rumors in regard to the PlayStation 5 before its launch was backwards compatibility. There were some expectations that the PS5 would come with hardware emulation for all previous PlayStation consoles, whereas the reality was that it was just the PlayStation 4 that got covered. Sony has taken a step to rectify the situation for those gamers who want to relive classics on their PS5 with the updated PlayStation Plus service, but this only allows for PS3 game availability via cloud streaming.
However, this might not be a permanent situation, with game industry journalist Jeff Grubb making some interesting claims in a recent YouTube stream (via VGC). Apparently, he believes that Sony may be working on full PS3 emulation for the PS5, thus removing the potentially capricious streaming element from the mix. But he also states that this could be some time away yet, with the PS3 being an infamously difficult platform for developers to work with.
Grubb says that he has “looked” and “asked” (presumably with his sources) about whether Sony was forging ahead with true PS3 emulation on the PS5 and the signs seem to point in that direction. But, of course, there is the question of whether Sony would be willing to invest millions into such a project that may not pay much in return. While some PS3 classics have made it to the PS5, such as The Last of Us (playable via PS4 disc; remake for the PS5 rumored to be coming later this year), others are still woefully absent, like the seminal Metal Gear Solid 4: Guns of the Patriots.
Source(s)
Jeff Grubb (Jeff Grubb's Game Mess on YouTube) & VGC & PlayStation blog