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If they're smart they won't release another console until another generation has passed so they can make the PS3 a viable contender.

The only reason they would want to release a PS4 is if the PS3 becomes progressively detrimental to the Playstation brand and they need a fresh start to try and set things right. Even then I'd expect the PS4 to be nothing mor than a PS3 with refined Engineering, a faster Blu-Ray Player and utilities for no-format gaming.