I'm trying to figure out if there would ever be a reason for a PS5...  unless it was just PSP3...

I mean... PS4 seems like it can basically produce whatever is in someone's imagination.  What more could you need the thing to do?  We already have people saying, "What?  PS4?  Already?" and, others, who aren't impressed about the processing power, because the PS3 does enough for them.

So, two things...  Do you think that PS3 and PS4 would compete on a significant level?  Not based on price entirely, as with the case of PS2 and PS3...  But, based on having a console that does just what I want, and nothing extra, and a console that does everything and more.

And, the second thing...  PS3 does a lot... apart from the graphical output, and sheer number of objects, what do you think will be new?  What will the PS5 do, in your opinion, that would make it truly better than PS4?  What's stopping Gaikai from streaming PS5 games to the PS4?  Is this the end of the road? :(

Sony says they have plans for PS4, PS5, and PS6 (or, was it Ken Kutaragi?  In which, that statement wont matter anymore)

This has probably came up in the past... like, with the PS2, and people not being able to imagine what would happen 6 years later during the PS3's announcement (before the price announce)  But, this time, it looks like it's actually at that point.  Sure, PS4 may not be 1-1 with reality, but, if PS5 pulls it off, will people be willing to pay for it?

TL;DR?  Bolded..

I agree, I can't see how there can be much more of a significant leap from a graphical standpoint, at least not to warrant the cost of yet another $500-$700 piece of hardware. It'd have to be like the Matrix or something..

Personally (forgot to mention in the OP) I was thinking the best thing they could do is shrink it down and put a screen on it, perhaps.  Then, maybe, the next gen would be the last gen on home consoles.  All else would be handhelds you plug into your TV?

Good grief. The PS4 is like a PC from 3 years ago. It's hardly cutting edge guys. I built my gaming rig last year and it's WAAAAAAY more powerful. The demos looked great, but they aren't anywhere near to photo realism. As for the PS3, it needed to be replaced. It's showing it's age bad. Real bad. Look at the difference between Crysis 3 on PC and PS3 and you'll see why it's on the way out.

What I imagine in an ideal video game world is instead of using all the ram for super graphics in PS5 the graphics will look only slightly better then PS4 but the worlds would just be massive and a lot more detail.

the concept of Consoles is dying, they don't need graphic capabilities any more, they need innovations in design and gameplay.

Consoles can't keep up ..... new GPUs , CPUs and Phones release every year and progress is becoming faster and faster, while consoles are stale and slow.

in the 90-2000's , graphic design developement was slower, so consoles had more relivancy to boast on their graphics against the PC, sure there was a gap, but it took awhile to differenciate.

Texture scuplting, physics engines, and Graphic engines are getting better and better every month, its the reason why we don't see that much leap in graphics any more as we did with previous generations, because we see small improvements coming fast, rather than big sluggish improvements

I think the only "consoles" that get it right are handhelds, they're not graphic centeric , more gameplay centeric, and they're not cheaply made, they're games for the sake of games.

What nintendo (and now Sony) are doing is actually very good for the console market, they're combining all systems together and make the console not limited and more open which leads to what the perfect console idea, its an object that sits there and streams your games to you whereever you are sitting around the house, rather than limiting you to controllers around one televison , Gabe Newell talked about that idea on this video, its very interesting and i recommend everyone to watch it 

its sad that most gamers are just saying "WHERE IS HL3?!?" while ignoring the important stuff this guy talks about about the future of consoles and desktops

Offtopic  : The stuff you read on youtube and by gamers in general just makes you facepalm, and is probably the reason why I hate gamers in general

There's always room for improvement what I don't like is people like the motorstorm guy talking about minute details like the weave of fabric and how it will show surface change if you brush against it or some similar thing and there I'm noticing that the curve on the headlights isn't smoothed out any better than this gen , developers need to get stuff like draw distance stable frame rates less pop up more unique people in their crowd scenes etc , rather than worry about bragging about fluff.

Listened to the entire thing...  So, I guess PS5 will have swappable parts, be able to play PS1,2,3 and 4 games, while Also being mobile?

As computer increase in power, so does the things they can do. You have do double the power to really see much of a difference. As Kain_kusanagi said, we are still a long way from photo realism.

Also, screens will get bigger, 3D will get better, and resolutions will get deeper. The SP4 was just unveiled, I'm sure in 5 years games on it will look even better than launch.

But it takes a tremendous amount of power to make a noticeable difference. I'm sure the PS5 will have a 'Super Kinect' thingy, but much more advance than the new PS4 Eye. And probably a few things we haven't even thought of yet.

Yep... I totally forgot about the resolution increases... but, that can only happen so much, before the tv either becomes to big for the living room, or you just plain can't see a difference..  And, that's partially what I mean with PS4...  It may not be photo-realistic yet...but, how close do you need to be, and would you care enough to spend that extra money?