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PS4 will be an upgrade, whatever they needed to make the console function in HDTVs is already done, the Blu-Ray promotion is done also, so this one will not need huge steps...

So i'm thinking:

-CPU: Cell upgrade, with full hardware BC from the start, something with 2-4 PPEs and 16 available SPEs, running at 4.0 GHz... Just like Ninty did with upgrading the Gekko (Hollywood is a Gekko upgrade)...

-RAM: 4 GB-8GB (whatever is good for 2011-12-13)

-GPU: Nvidia again, more powerful and RSX compatible from the start...

-HDD: starting with 320 GB...

-Disc Drive: PS1 had CD, PS2 DVD, PS3 BR, and guess what? PS4 will be BR also... What changed???
1. PS3 was built around promoting BR, it was not an accepted tech like CD and DVD were when the previous consoles launched.
2. BR can do a lot more data than what's needed next gen, even for RPGs. 25 GB single, 50 GB dual, 100 GB Quad, and so on...
3. This economy won't handle another format so fast...

-Full BC with PS1/2/3 games (1 and 2 with software emu) with a hardware upscaler included for PS1/2 games and PS3/4 games that are 720p...

-Upgrades on software, card readers, 6 to 8 USB ports, wireless, dualshock 4 (rumble+better sixaxis), and a full motion control for the "PS for everyone" brand...