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Neo is the slim or its replacement. Regular die shrinks didn't work this gen, 28nm planar was the end of the line.
The jump to 14nm finfet is expensive and probably not guaranteed 1:1 compatible, hence:
He does believe that there is potential and that’s why the latest and greatest technology can be introduced in the middle of a life cycle.
Double the compute units, still reducing the gpu size, get a nice upgrade in power so any difference in architecture can be ignored and a higher sale price is justified. It has nothing to do with VR or keeping up with the Joneses, simply a step to different hardware tech mid gen which can again be shrunk and made cheaper over the years.

PS5 will ditch Neo. PS5 will have a new CPU, different memory architecture eg 16GB HBM2, Sata 3 or M.2 for much faster read speed. Neo won't be compatible.