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pterodactyl said:

The PS3 is currently still in last place and, last I checked, is still losing them money with each unit sold. PSP Go was a flop and PSP sales are dwarfed by those of the DS. They're billions of dollars in debt. Should they really be thinking about a PS4 right now?

There is absolutely no question that Sony has been working on concepts about the next console generations. They have the engineers and researchers in their labs and have certainly kept them busy. Work on any of the existing and future gadgets is a continuous operation - whether you think this and that is a flop or not.

More to the point: I think a logical step for a future console is a cell chip with 2-3 cores and an additional 2-4 SPUs (for motion stuff and other ideas). In 2-3 years, the 32nm fabs will be able to keep manufacturing costs at the level they are now for current cell chips. As for the GPU solution, a fermi solution is completely out of question due to the high transistor count and associated thermal problems (there might also be "philosophical" reasons for not going such a route). In designing a console, there are several ceilings (chip costs, max. thermal output) which exclude even trying to go certain paths, and attaining the level of high-end PC graphics solutions is simply not possible for consoles. The GPU situation is certainly the more difficult problem for Sony.