Much more at the link:

http://www.giantbomb.com/articles/so...-ne/1100-5437/

Earlier this year, rumors began to fly that Sony would release an upgraded version of the PlayStation 4, a console often called the PS4.5 or the PS4K by fans and press. Today, multiple sources have confirmed for us details of the project, which is internally referred to as the NEO. No price was provided, but previous reports indicate that the NEO would sell at $399. At time of publishing, Sony has not returned our request for comment, but we will update this story if the company responds.

Starting in October, every PS4 game is required to ship with both a “Base Mode” which will run on the currently available PS4 and a “NEO Mode” for use on the new console.

Games running in NEO mode will be able to use the hardware upgrades (and an additional 512 MiB in the memory budget) to offer increased and more stable frame rate and higher visual fidelity, at least when those games run at 1080p on HDTVs. The NEO will also support 4K image output, but games themselves are not required to be 4K native.

The NEO will not supplant the current PS4, but will exist alongside of it and use the same user environment. The PS4 and NEO will use the same PSN store, connect to the same online communities, and offer the same user experience, so expect to see the same cross media bar that you’re used to. Players will be able to retain all of the purchases they made on the PS4.

Sony seems committed to keeping the NEO and the original PS4 player bases connected. As such, there will be no NEO-only games, and Sony will not let developers separate NEO users from original PS4 players while playing on PSN. Likewise, Sony explicitly and repeatedly states that developers cannot offer exclusive gameplay options or special unlockables for NEO players—so don’t expect NEO owners to get a level editor or a special Rocket League car that you won’t have access to on your original PS4.

Specs:

Original PS4

CPU: 8 Jaguar Cores at 1.6 GHz
GPU: AMD GCN, 18 CUs at 800 MHz
Memory: 8 GB GDDR5, 17 GB/s

NEO
CPU: 8 Jaguar Cores at 2.1 GHz
GPU: Improved AMD GCN, 36 CUs at 911 MHz
Memory: 8 GB GDDR5, 218 GB/s

Not bad, not bad at all!
As was my intention, i'll buy day 1...

Still too slow to emulate the ps3....

hm.. considering the Jaguar is usually seen as the big bottleneck of PS4/X1, I'm not sure how a ~30% overclocked version is supposed to handle more than twice the GPU power

This is the important bit:

Sony seems committed to keeping the NEO and the original PS4 player bases connected. As such, there will be no NEO-only games, and Sony will not let developers separate NEO users from original PS4 players while playing on PSN. Likewise, Sony explicitly and repeatedly states that developers cannot offer exclusive gameplay options or special unlockables for NEO players—so don’t expect NEO owners to get a level editor or a special Rocket League car that you won’t have access to on your original PS4.

Hmmm...I still don't know about this...Wouldn't it be a pain for developers to have to make games work for both sets of specs? The only thing I can think of, is that the games will be made to base PS4 specs, and then just run better on the new model.

btw so they were probably developing "Morpheus" and "Neo" in tandem - I expect several "normals" games (developed to be played on TVs) to have a PS4K exclusive PSVR mode

I think this is a big big mistake if true. I'll probably cancel my PSVR order, and the PS4 would be my first and LAST SONY console.

"PS4 Base and NEO versions of a game will also need to have parity with regard to peripheral support. So don’t expect NEO Games to have exclusive VR modes. Sony makes no mention of PlayStation VR in the docs we've seen, so it's hard to know what that means for the persistent rumors that this upgraded PS4 will be able to support PSVR without the "breakout box" that the headset ships with."

Doesn't sound like it. Though, it does make it hard to see why they would bother with an updated PS4 is everything needs to be the same...

Why? How is this different from what Nintendo does?