I really have mixed feelings about this. Sure, emulation existed for a while but it always lagged enough or had small bugs to rarely match the spirit of the original (in rare cases it improved things with better framerates, resolution boosts and loading time cuts).

I guess this is somewhat late in the lifecycle of the PS5 but it feels different, like a death blow. Now that this is possible, it would most likely be easy to replicate when the PS6 comes out, or for any other console. Whatever competitive advantage with exclusives consoles have, goes away. And these deals cost a lot of money and take years to plan and execute.

I guess companies then transition to being software only, like Sega did? (though they never recaptured the charm they had when they were making their own hardware). Are we slowly witnessing consoles go the way of the cd player?