Here is a better rumour:

PS4 Slim, coming this August, for $299 USD. It will have HDMI 2.0 support, and support Netflix and Sony 4K streaming services. It will have the same Bluray player as the current PS4, and play the same games as the current PS4.

Exactly. If a game runs poorly on a console, it's not the console, it's the developer.

You can't just design whatever your heart desires and then make it and blame the console for only being able to handle it at 30fps. 

You can't paint a 6ft painting on a 5ft canvas. You gotta work WITH the hardware.

Really? if this becomes a trend in consoles I would do the opposite, it breaks one of the key benefits of the console model around fixed hardware raising dev costs and consumer costs. I currently game on both consoles and PC's but if this happens across the board I think it would be the death blow to consoles and better to just ditch consoles all together.

If this becomes a trend for consoles, then their is very little need for PC's in most households. Microsoft is already basically turning Xbox into their in house PC brand, completing their hardware portfolio (Xbox = PC, Surface Book = Laptop, Surface = Tablet, Windows Phone = Smartphone). Sony is flinging the doors of the PlayStation Store open, and allowing PS4 and PSVR to be basically an open, but secure ecosystm (ala the App Store/Google Play). These consoles are becoming full blown, highly optimized PC's, with steamlined and highly optimized OS's. 

This kind of release schedule is actually going to lengthen the generation, while allowing consumers choice within the platform. It is going to give people a low cost entry tier, and high tiered devices as tech advances. This will allow Sony and Microsoft to lock to this generation longer, and allow PS5 and Xbox Two, to be massivly improved platforms, built around completly new tech, and focused on redering and game design teniques that are just not possible on PS4, PS4.1, PS4.2, etc.. 

On the development side, this is going to open the door to millions more consumers. As I said above, these consoles are becoming the home computer of the future. As they quickly make the transition to complete computing systems, the sales of common PC's will shift quickly to consoles. This is going to mean their will go from 60M PC/PS4/XBO users capable of playing current gen games, to a couple 100 million in a matter of a couple of years. There will be more people with devices capabale of playing the latest games than there ever has been in the history of the industry. Finally, at the end of the day, the amount of work to optimize a game for PS4 and PS4K will be much less than the current work being done to develope for PS4 and PS3. Once PS4K and XBOK arrive, I expect a complete stop in production and development on PS3 and 360, which will actually result in savings.

On a broader computing level. The raise of low cost highly optimized computing devices will be a tide that raises all ships. Having a baseline of PS4 and XBO will allow software outside of gaming to make massive leaps as well. Having 100's of millions of people all using the same devices will allow all software to be highly optimized, and that will lead to a better computing experience for everyone.

If this becomes a trend for consoles, then their is very little need for PC's in most households. Microsoft is already basically turning Xbox into their in house PC brand, completing their hardware portfolio (Xbox = PC, Surface Book = Laptop, Surface = Tablet, Windows Phone = Smartphone). Sony is flinging the doors of the PlayStation Store open, and allowing PS4 and PSVR to be basically an open, but secure ecosystm (ala the App Store/Google Play). These consoles are becoming full blown, highly optimized PC's, with steamlined and highly optimized OS's. 

This kind of release schedule is actually going to lengthen the generation, while allowing consumers choice within the platform. It is going to give people a low cost entry tier, and high tiered devices as tech advances. This will allow Sony and Microsoft to lock to this generation longer, and allow PS5 and Xbox Two, to be massivly improved platforms, built around completly new tech, and focused on redering and game design teniques that are just not possible on PS4, PS4.1, PS4.2, etc.. 

On the development side, this is going to open the door to millions more consumers. As I said above, these consoles are becoming the home computer of the future. As they quickly make the transition to complete computing systems, the sales of common PC's will shift quickly to consoles. This is going to mean their will go from 60M PC/PS4/XBO users capable of playing current gen games, to a couple 100 million in a matter of a couple of years. There will be more people with devices capabale of playing the latest games than there ever has been in the history of the industry. Finally, at the end of the day, the amount of work to optimize a game for PS4 and PS4K will be much less than the current work being done to develope for PS4 and PS3. Once PS4K and XBOK arrive, I expect a complete stop in production and development on PS3 and 360, which will actually result in savings.

On a broader computing level. The raise of low cost highly optimized computing devices will be a tide that raises all ships. Having a baseline of PS4 and XBO will allow software outside of gaming to make massive leaps as well. Having 100's of millions of people all using the same devices will allow all software to be highly optimized, and that will lead to a better computing experience for everyone.

Sorry but given the day it is, I have to ask: Are you serious?

I would say the opposite, if this becomes a trend then consoles die without a doubt. between PC's and handheld devices consoles become irrelevant. The key advantage a console has is that fixed hardware target making it cost effective for both consumers and developers. without that all they are is a PC with a very poor feature set that nobody will want.