The problem with the online is that the PS3 was the first to have full online compatibility, And you know that the first device isn't perfect.I belive the people Sony have learned alot since 2007 and the PS4 will perform much better. A device needs alot of power and memory to run online because the data takes time to even reach to the Playstation , when it needs to be analyzed and displayed. Ill Explain using an example: Imagine two PS3s in an opposite side of the earth in an online room. Now the data has to travel from one PS3 Through optic cables to the second PS3 ( ignore the short way between the cable , the internet provider and the second PS3) ,a distance about ~20,000km The data travels at the speed of light so the time takes to the data to reach the second PS3 is: (20,000 km)(1000 meters in on Km)/(299,792,458 m/s)=~0.066 seconds. Even if we ignore proccesing time we still get 0.066 seconds which is too much for a smooth experience. Not just "Not so smooth expeirnce" but a very bad one. Imagine our two people racing at fuji speedway: They are at the end of the main street , one of them draft behind the second men. The distance between them is 10 meters and they are both going at 250 km/h Then the first men starts to brake , the data about the first men braking hasn't reached to the second PS3. So the second men gets the data in a 0.06 seconds delay, at that time he already crashed into the back of the first men. But the data about the crash hasn't reach the first PS3 so see the crash in a 0.6 seconds delay in which time he was breaking normally. This is a lag. So the PS3 need to try and predict what will happen using a very complex algorithem , this takes power and time and sometimes its just can't keep up. The PS4 is has more processing power so it can predict what will happen faster .And if PD will improve the algorithem so it could be more efficient , we will get even smother game experience.