As IGN reported on, PlayStation 4's firmware is being updated on Tuesday. Version 2.0 comes with a laundry list of nice improvements, including YouTube integration, dashboard themes, and a marked improvement to the PlayStation Camera's voice command system. But the biggest new feature is easily the new Share Play function, which aims to use the PSN to duplicate the experience of playing with friends on your couch. Sony has just released a YouTube video showing exactly how it works.
First off, in order to host a Share Play session, you'll need to be a PlayStation Plus subscriber, but the person you want to invite may not need one depending on what you want to do with your session. If you just want your friend to see your play session exactly as you see it, they don't need to have PS+, nor will they need it for you to virtually "hand" them the controller. Simply hit the "share" button and you're a couple of button presses away from letting your friend take the reins.
That's not all Share Play does though. You can also invite a friend to play games that have a local co-op option. Aside from the obvious utility of being able to play with a friend who doesn't own the game, this is also a boon for games that lack any formal online multiplayer. How many times have you wished Towerfall Ascension had online multi so you could get a full four-player game going without having three smelly humans in your home? Probably lots. Share Play will solve for this...but only if the people you want to play with are PS+ subscribers as well.
Other big things:
Youtube integration (about damn time)
Custom themes
USB music (also, about damn time)
Ability to move saved video clips to USB flash drive/external storage (will make editing/uploading easier, can xfer to computer now)
Enhanced voice commands
Content area restructuring