No I didn't get it from my school cafeteria. Check out this article and see for your self. After Microsoft registered the domain Microsoft-Sony.com, people started speculating.

http://kotaku.com/5821752/why-sony-and-microsoft-teaming-up-on-their-next-console-makes-a-lot-of-sense

I wouldn't even call that article a rumor so much as "what-if?" speculation. In my opinion, if Sony and Microsoft met for anything gamewise, it was most likely to discuss Blu-Ray for the next Xbox. At its most outlandish, it would be for cross-console chat or to agree on a common set of developer tools to make porting between the two consoles easier.

PS4

-The XMB needs to go
-Controller needs grips and concave triggers for R2 and L2. In this new era of gaming they will need it.

-PSN Plus needs new additions

-Proper matchmaking based on rank/ and kill death ratio should be put into place so devs can filter their games better.
-I know cross chat is coming but it isn't there yet so I am putting that in.
-More community features, not involving Home, to make the experience more personable.
-Stick with Blu Ray but increase the capacity.
-Make a slick looking box. With the amount of money they are spending it shouldnt be hard to hire a test team to rate the aesthetic of each one.
-A box in the new menu that shows what the top 20 games are on Playstation.
-You make great games but choose wisely which ones will be developed and put out.
-Up your marketing
-Put up feature length movies in conjunction with your couple hottest games.
-New multimedia functions, so the PS3 feels like a the home center, but don't take it too far.
-Drop Little Big Planet. Find a replacement, please.
-PS Eye chat parties in lobbys and friends list.

720
-More games. Microsoft just doesn't make enough on their own.
-Give your consumers better deals with more incentives. Xbox Live is at surplus level and it can be afforded.
-Drop IGN and make Gametrailers a partner for multimedia with 1080 P visuals for trailers. Invisible Walls, Bonus Round and other shows would be a hit on Xbox Live because of the unified community. 

As far as development is concerned the 360 has no life left. The 720 should've been the first rumored to come out. The PS3 is the one that is rumored to be coming out and yet it has like seven more hot exclusives to put out. I might end up having a PS4 and PS3 side by side in my living room.

I disagree, and the Wii being the weakest of the three has been very successful and has defied your logic. It's not all about horsepower and specs anymore. Game execs realize that in order to attract a larger more casual audience a console has to do more than just the graphics. It's abou the games, fun games. The Kinect for Xbox has been very successful, and you can expect Microsoft to sit back and rake in the profits. There's no need for a new console yet. And it doesn't matter which console comes out first, it's about which console is the best and offers the best games.

Instant restarts. Give the consoles enough memory so I don't have to wait upon death or when restarting a race. Racing games could do this in the previous gens, seems that ability has been lost.

Game sound to be sampled in 44.1khz or rather even 88.2khz instead of 48khz. Standard ability to play your own soundtracks directly from CD or after lossless CD ripping and correctly decoding pro-logic surround sound from the audio CDs.
Now it's not really worth it, the ps3 hardly has games that allow custom soundtracks and if it does only through compressed mp3s that then are also resampled from 44.1 to 48khz. The 360 does allow custom soundtracks but adds another layer of output compression. Either way pro-logic surround sound from the original CD is lost.
96khz/24 is fine too, give me some HD sound with the HD picture.

Nintendo cut off the Wii, but Nintendo's first party is more potent than Microsoft at any time of the day. They decided to shift their focus to a console that is almost out and is pretty much sold out. Microsoft is putting their money on Kinect instead of their exclusives, which is why their offerings are always extremely slim. They were even talking about this on Bonus Round.

1. Normal headset should be able to send commands to the system. I shouldn't need kinect for that. This will open up developers to build games with oral commands without worrying about taxing the consumer kinect prices.

2.Faster dashboard flow.

3. Xbox should support 8 controllers wireless or mixed.

4. Support for touch screen monitors.

5. Not sure if this already exists, but ability to admin your Party and kick whomever.

6. Support for USB headsets. I like my MS Lifechat 3000.

7. Support for hearing game audio through headset.

8. Moving console shouldn't eat the disc.

That's all I can think of right now that matters to me.

I'm pretty sure Nintendo is still gonna continue to sell the Wii for the next couple years until the Wii U gets off the ground, just like Sony still sells the PS2. Microsoft needs to focus on making some great Kinect titles for a few more years, and maybe drop the price of the Xbox. The Xbox 360 is still the best selling console in North America. Sony on the other hand is still beating a dead horse with the PS3 in North America. They keep releasing new versions of the PS3 like the stupid Slim and the Super Slim when they should just focus on making great games.

People can have an opinion. Maybe I should now report everyone who thinks Live Gold isn't worth the price (sarcasm)