This is a death sentence for mediocre games, as most buyers wouldn't want to keep a game forever unless it's nigh perfect. If devs can't toss out high profit shovelware they won't sign on with the PS4. If PS4 has no games, it's dead

The only way this works is if initial sale prices are dirt cheap. Without the big ticket $60+ initial sales, developers will look to do everything low budget. So expect even more shovelware...