Ok I'm a bit confused. This opens up more questions.
So does this mean that PS4 games no longer require any kind of install and that the 'cache' is only used while your playing the game? He says its automatic, implying that the user has no control over that right?
Does that also mean that you have to wait for the game to 'cache' to the hard drive before playing? Such as what was mentioned for Killzone, where you have to wait for so many GBs to cache before you can start playing?
Does that also mean that users no longer have the option to install to the hard drive if they wish in order to avoid the caching delay every time?
Of course, none of this applies to digital downloads, which will still require you to have the space available for each game, unless this caching thing also applies to digital downloads.
We need more info.