When Sony launched PS Vita earlier this year, they put a top-of-the-line mobile GPU inside:
4-core SGX543MP4+

Apple just launched the latest $499 iPad 4 with PowerVR SGX543MP4 (quad-core graphics) despite Sony incorporating this GPU into the Vita as early as February 2012.

Based on Sony's push to have very high-end mobile GPU graphics in the Vita, I find it somewhat odd that Sony would do a 180* turnaround and put the lowest end GPU into their next generation in-home console. It makes no sense. If Sony wants to cater even more to hardcore gamers, they would need to use a dedicated GPU of some sort to be able to play next generation DX11 games. Not only that but even in current games, A10-5800K has no chance to play them at 1080P @ 60 fps. Even with console centric optimizations, that APU is simply too weak.

The source of this rumor states:

There is “no difference” between Orbis and PlayStation 3′s outputs, according to the source.

^But A10-5800K, by virtue of being based on HD6000 series GPU, can only drive 4K resolution displays over Displayport 1.2. You need HD7000 series GCN to drive 4K content over HDMI through "3Ghz Fast HDMI," exclusive feature of GCN-based HD7000 series. If Orbis won't have Display Ports, then Sony can't support 4K TVs, which contradicts that Sony will support 4K TVs.  You also need Fast HDMI to be able to support 1080P Stereo 3D gaming / BluRay 3D at 60 Hz per eye with next generation TVs. Therefore, the source is contradicting itself, unless this is a very custom part that includes some GCN features inside HD6000 series GPU made specifically for Sony.

http://www.anandtech.com/show/5261/amd-radeon-hd-7970-review/8

"With Orbis, Sony aims to avoid the problems it encountered when launching PlayStation 3. It aims to create a console that’s “very affordable,” but “isn’t a slouch.”"

"The machine is not being made in Japan."

"The system will also be able to accept system and product updates in the background, and will “always be in standby mode,” if you choose to enable that option."

Too good to be true.

Sounds good. I could see this selling for $399 easily.(at a loss of course)
8-16gigs of RAM sounds amazing. Retail version will probably be between 4-8 though. Which still blows the Wii out of the water.

I'm glad they're going for powerful but affordable.

I'd rather have something new and interesting in 5 years then keep playing the same old system for 10 years, yes.

No system stays interesting for more than 5 years.

All talk of aiming for 60fps actually annoys me. Am I the only person gaming on a 50hz tv?? I only bought it 3 years ago when most televisions were 50hz, at least in UK. I don't want graphics tearing or input lag issues from playing next gen games but it looks inevitable. There was 'motion interpolation' back then which effectively doubled a tv's refresh rate though I'm not sure if the extra frames would have eliminated tearing for 60fps games.

Does anyone feel this is an underrated issue or is it just me? Wouldn't it make better sense for game developers to aim for 50fps instead, not a huge difference from 60fps?

For those saying this will only be a bit more powerful than Wii U, you're probably wrong.
The 1st devkit supposedly included a separated graphics card on top of the APU. This new rumor seems to have left out that part.

Either way though I'd be happy with the system even if its only moderately more powerful than a Wii U. There are 2 more devkits to go before it becomes final so here's hoping for more POWAH!

UK Tvs are 50hz, US its 60hz.

I'm sure games are optimized for that as long as you don't import them.

to get ahead of M$ :)

I'm pretty sure UK TV's have been able to run 60hz for quite some time.  I know Smash Court Tennis Pro Tournament (PS2) had the option wayyy back and I used it.  I also had to play some of Wild ARMs 4 in NTSC mode because of some glitch, and that required 60hz too :o

The PAL standard uses 24hz and 50hz... NTSC standards uses 30hz and 60hz... but there aren't no real difference.

And all new HDTV uses PAL or NTSC automaticaly based in the console or player output.