It honestly probably means nothing... In The Tomorrow's Children,you are to restore the world after some of the people in it were absorbed into a void and reappeared as Matryoshka.

Backwards compatible to play PS1, 2, 3 and 4.........

via PSNow :p

How did you find out about the PS4 Oracle?

Probably from the PS4 Architect :p

If they upgraded the CPU... ps3 bc is in fact doable.

It's also in their interest to add full bc as it:
Allows legacy ps game sales on psn
It allows for a full bc x86 firmware to exist that can cheapen psnow costs.
It counters the Xbone selling point.

Wonder how this will affect PSNow and whether this means we will be able to download digital ps3 games we already own. 

They don't need to counter anything. They also hsve PSnow whivh is something that bo doubt will be goong down in price in time. And BC is just not as important as most make it out to be. It's one of those features most people scream they want but no one uses.  

And it would take a lot more than just upgrading the CPU to allow for native BC.

As far as upgrades go. I'm pretty certian that the specs revealed will be better than what was leaked. It's almost a given. By how much is anyone's guess. But I think what was leaked was good enough. Though I know it will be better. 

For someone who knows how the tech works, what difference would adding 4GB of GDDR5 make and will it be a worthwhile difference? If not, what would they need to do to get it to 5TF?

I'm hoping whatever it is they do, they are able to keep the Neo at $449 at the most.

Edit: just read up how to work out TF and roughly what Sony would need to do to hit 5TF. The RAM won't make a difference. 

That's correct, RAM wont make a difference. They can up the amount of shaders (a different GPU configuration) or increase the clock speed (increases heat/power).

The RAM is an interesting point in rumors. Rumors suggest that PS4 Neos would have 1GB more to work with for games. Current PS4s have 4.5gb for games and 3.5gb reserved for OS, PS4 Neo would have 5.5GB for games and 2.5GB for OS.

If you ask me, this strongly implies on what the Microsoft boss said before that Scorpio (and Neo should be the same) won't do anything for you unless you have a 4K TV. What this means is that PS4 Neo games will only have the 4K native/internal rendering resolution; all else like textures, filters, and effects remain the same as regular PS4.

Further, some people claim that current PS4 Neo specs (rumors) isn't enough for 4K gaming. If you ask me, with Vulkan and simply a higher internal rendering resolution then current specs should be enough to do 4K and 30/60fps similar to PS4 regular game.

I am no expert, but I have an informed idea. Getting the GPU to 5TF would be as simple as up clocking it from 900+MHz to 1100+MHz. Considering the GPU it's based on is designed to run at 1300-1400Mhz it's not beyond reason that such a bump can happen (I personally believe it's guaranteed to happen). 

It will require a really good cooling system though, as the heat generated from running at higher clocks is likely the single biggest issue so would have to contend with. Then again, Sony is first and foremost a hardware company so if someone can pull this off it will be them. 

Another thing to consider is the maturity of the 14nm fabrication process. Simply put, for every 100 chips bought right now only 80 of them may reliably be able to run at a higher clock. So if they wanted to go with a 1.1Ghz GPU they may have to bin like 20 out of every 100 chips. While going with 900mhz could mean that they could use 100 out of a 100 chips. What that means at the end of the day is that going with a higher clock will be all round more expensive for sony. 

As for RAM, at this level and if targeting higher resolutions and higher/more stable framerates then memory bandwidth is actually more important than memory quantity. I doubt adding 4 extra gig of ram would make that much if a difference. But it's also not the hardest thing in the world to do if it's something they considered from the start of designing the Neo.