PS4 'isn't quite as powerful as Epic was hoping for,' Digital Foundry reports

[Pemalite]

I think Ram amount wise, it's exactly what everyone hoped for with the PS4 and should last the mile for the entire consoles life.
CPU wise, they could have gone with a higher clocked processor.
Graphics wise... Well. At-least it's not a Radeon 6670 based card. :P

Still, UE4 isn't really going to be super demanding even on a several year old PC with multiple graphics cards, but that's enthusiast level stuff, not casual consoles, certainly not the next Crysis that's for sure.
In a a year or two the PS4's GPU would probably end up being low-end by PC single GPU standards rather than simply mid-range.
The biggest hope I have is that the Unreal Engine isn't as prevalent in this upcoming generation, Unreal Engine 3 was simply horrible in many aspects, but with the bright-side of it being light enough to be able to run on a toaster.