Sony is supposedly scrapping the backwards hardware compatibility format for a monthly online library subscription to legacy PSN games I believe, from what I've read ... is that still in effect if anyone can confirm? Yes hardware compatibility was scrapped, they are going to integrate the PSN service with Gaikai's streaming service (remember onLive?) so that you can play your PS1/PS2 games through a cloud service, eventually leading the way for PS3/Vita cloud gaming as well. It's still speculation atm (the service is expected to start in the second half of the year) and I'm fairly certain that even if you own the game you're still going to have to buy it again a second time on the service.