The deal that has been rumoured between Sony and Gaikai over the last week has been further confirmed by an article on GamesIndustry. It apparently allows streaming of PS1 and PS2 titles on the PS3, and perhaps the Vita.

First and third party games will be available on the service, allowing publishers to sell their back catalogue of games for PS1 and PS2. It will be announced during Sony’s #E3 conference. This marks the first time that Gaikai has teamed up with a console manufacturer, their streaming services only streamed PC gaming previous to the deal.

It is reported that even Bravia TVs and other Sony devices could get these streaming services (do I smell the Xperia Play?). More details will be announced during E3. Stick with ITB for the latest!