So like I wrote before, they are trying to get away with a quad-core processor. No hint though if they have a separate 7660/7770 GPU. But if they o for 1080p/60Hz/3D, it seems unlikely there isn't a second GPU lying around somewhere...

The A10 APU uses the 32nm process and have  a integrated GPU that performs on pair with Radeon 7660... I think Sony is putting an dedicated GPU inside PS4 too.

Edit - Fixed the correct GPU.

An APU and a GPU?   Just how much do you want this thing to cost?

Checkign the original story, I see this:

We were told that Sony’s aim with Orbis is to avoid problems involved in launching PS3 by creating something “very affordable” but that “isn’t a slouch”.

If they are trying to stay true to being "very affordable", an APU plus a GPU solution does not fit that idea.  To say nothing of the development complexity that would bring.   Developers are tired of Sony and their complexity.

I like the new report, but beyond the RAM size, it already matches what I have in the OP as an option.

I'm beginning to think the A10 APU is the more correction option for PS4 and neXtBox. Makes a lot of sense and could be in the price, heat, performance levels each would like.

I think he's just saying the APU has a GPU integrated within itself and its ~7660 model.

A 'dedicated' GPU would be independant of the APU.   So he's talking about the APU plus a dedicated, separate GPU.

The APU is a 7660 like the graphs shows but I think the PS4 needs another GPU or a better APU.

"A10-5800K has a Northern Island HD 7660D GPU which is able to run COD Modern Warfare 3 at 30-45FPS (no AA/AF, min. details) at full HD without 3D" 

I think that config is weak for the next-gen... I expect at least to run that game with the same config in 3D.

You are not considering that the chip will not be off the shelf. It will be customized as will the games. A game console gets far better results on the same set of resources than a PC.

I mean that game runs as good as that description now on current PS360 which has a far lower GPU than the 7660HD.

Which I never said. I said if your PC blows 250W, buy a PSU that can output 450-550W (running roughly at 40-60% capacity).

The XBox GPU has 240 (48*5) processing units, the A10 has 384 (96*4) units. That is not far lower and nowhere enough for 1080p/60Hz/3D.

Unfortunately the A10 is not GCN technology. If you add another GPU (and there is no way a lonely A10 can do 1080P/60Hz/3D, even without the PC driver brake), you are forced to add an older non-GCN GPU if you want seamless XFire operation. On the other hand, you could use the APU GPU for other stuff and add a GCN GPU (like I mentioned before the 7770 fits perfectly). Either way I'd say the second GPU is a dead giveaway if they really go the APU path (bad decision, Sony, really bad - but they can't go back to the drawing board at this late stage). If they want to beat the WiiU specs, the second GPU better be something big. Even then, the XBoxNext CPU rumour is beating the crap out of this PS4 rumour.