Just read the bolded bit if u aren't interested in any backstory. 

Ok. so lets get one thing straight. In gaming, its all about software. You sell as much software as possible and you make as much money as possible. Problem is, to get all those games sold, you have to have a fairly large install base. 

Now let's look at gaming hardware. Technically speaking, a new generation is warranted when it's possible getting the most powerful hardware into the most affordable box. So basically, how much can you get into a $400 box to JumpStart a new generation? But there is another part to that equation. How much better is that new box going to be to persuade gamers that it's worth it making the jump. 

Now the meat of my theory, there simply won't be enough to warrant such a jump with the PS5. Simply put, if the difference between every game on the PS5 compared to the PS4 is 4k@30fps/1080p@60fps when compared to a PS4 running the same game at 900p@30fps; then we'll, that's no difference at all. 

So I think the PS5 will mark the first full cross generational generation. I believe that through out the life of the PS5 every game made for it will also be released for the PS4. Albeit at lower settings.  I even believe that both consoles will run the exact same OS. This way, those that want to play at 4k or at 60fps with my polished visuals can "upgrade" to the PS5. Those that are ok with 1080p/900p@30fps will stick with the PS4. But everyone gets the same games. 

I know this doesn't sound anywhere as good as a full on generational leap, but I think we are past the point where we will have generational leaps as seen with the psx to PS2...etc. I mean lets face it. We are past a point where the hardware of a platform completely prohibits certain games from being made on it. We are in the feature benefits era. Where the difference between higher and lower powered hardware will come down to no more than pixels, framerates and a higher setting of certain effects. 

Discuss damn it!!!!!!

I think you're not too far off the mark.

I think that the PS5 will have its own new titles exclusive to it, but will continue to play PS4 games natively. The jump to an x86 architecture will allow for that. Which means that every games released on the PS4 will be able to sell for the PS5, and will run better on it. But I don't see Sony, or anyone else, releasing a console that has no unique or exclusive content. 

Considering VR is about to become a thing, and as it become more intricate and sophisticated, more powerful hardware will be required. But even if VR ends turns out to be a fad, I don't yet see that we've reached that so-called point of diminishing return. When a Skyrim like open world game can look as technically sound as The Order 1886, then I'll concede. Until then, console generations are going to remain the way they are now (non cross-generational).

so basically you are saying consoles have finally turned into different levels of PC

OT: Really can't see this happening, would be cool, but if they did that then the only incentive for upgrading would be better versions of games they can already get on their current console. They will lose a lot of potential buyers waiting for an exclusive that only shows up on their new system. From a business standpoint I don't think it'd be smart. Although I agree the graphics won't be a huge jump anymore like it used to be.

Well true. There will no doubt be games exclsuive to the PS5. And the PS5 will be fully BC with the PS4. I just also feel that majority of the games released on the PS5 will also have a PS4 version. Even if the PS4 version comes out 6 months later and for half the price or something. I mean think about it. They can even have every PS5 game running at 720p@30fps on the PS4 with toned down everything. If the core architecture of both consoles are identical, there really is no reason not to. 

That happened the second the put a HDD into a console and gave it native internet access. Only difference thoughbis that consoles will always remain a closed platform. Piracy is a bitch on PCs you know?

No way. One of the biggest benefits to consoles is that developers can make games to a specific set of hardware specs. First Party devs will never be able to push the new hardware if they always have to scale it back to work on the old console.

I do, however, think that starting with the PS4 all PS games will be backwards compatible. Since they've moved to an X86 setup.

Edit: Not to mention that all they'd be doing by extending the life of the PS4 is giving people less reason to buy the PS5.

I don't see how they lose potential buyers at all.

Let's take FF16 for example. If the PS5 and PS4 versions of the game is content identical with the difference being that you can run it at a higher framerates, higher rez, better effects, better textures and faster loading times on the PS5 as opposed to the PS4. Then those that feel they want those added benefits and are willing to spend $400/$500 for the new console will do that. Those that feel they are ok with 900p@30fps with lower IQ will just get it for their PS4. 

Either way, the game will still sell the same amount of copies. And even more than it would have sold if released as a PS5 exclusive cause the PS4 install base will be much much larger. At some point, the cost of the PS5 will be so low that everyone else will jump in. 

Look at treesFX. it works on one GPU and doesn't on another. First party devs can push the hell outta the new hardware. but if at its core the new hardware is basically the same as the old one but just with more then optimizing for both won't be too hard. Provisions for such optimizations can even be implemented on an API level as is currently the case with PS4 to Vita ports. . 

Let's not forget, there is also the option of games releasing for the PS5 6-12 months before it makes it to the PS4. 

And the trick is, people wouldn't need to buy the PS5, for the PS5 to still be a success. If a game sells 20M copies at $60 a pop accross two consoles of different generations. I strongly doubt the publisher would care if it sold more on one or the other in the same family of consoles. 

I genuinely think next gen could still have 30fps. They would use the extra power to get better visuals because they know people don't mind playing at 30fps now.

Every game coming out now can be 1080p 60fps it's just the devs want visuals more.

Huh interesting.  So there would be no excuse for my digital PS4 games to not work on my PS5 (assuming they stick to this route?)