Like Adobe Remix, the hosted Photoshop service is set to be free and marketed as an entry-level version of Adobe's more sophisticated image-editing tools, including Photoshop and Photoshop Elements. Chizen envisions revenue from the Photoshop service coming from online advertising.
i hope it will support layers and a few other advanced features.
I suspect there will be file size restrictions too to save bandwidth - which means it will probably only be usable for web images.
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