Sounds like Sony had enough of being lagging behind of Microsoft. This is good news because that means we can download and play tons of PS1, PS2, PS3 and PSP games.
@Camel with 2 thumbs I believe they mean to merge PS Now and PS Plus into one subscription, so like tier 1 would be PS+, Tier 2 would be PS= as well as PS Now features and then Tier 3 is the one that let's you play/stream the older games.
It all depends on how they do the classic games and the pricing for me.