Yes they do! Every gen you need a graphical upgrade. The Wii is proof of this!

The Xbox was the most powerful console last gen but they still upgraded the hardware with the 360.

PS3 launched at $500 for the base unit. $600 was for the 60G model.

Next gen wil hae a big graphics leap aswell. I expect no less than Crysis level graphics next gen. Sony wil reuse a lot of tech they have this gen, Blu-Ray, Cell Processor, etc. They will add extra RAM, improve the PSN drastically and DD will have a bigger roll to play. I expect the PS4 to retail at $450. And people here need to read up on a concept called "inflation".

It depends on the comparison. In 2013 you'll probably be able to buy a laptop PC for $299 with decent 3d performance.

Really? Looks more like the Fibonacci sequence to me. PS4 for $900 confirmed!

In all seriousness, a 400GB-1TB Blu-Ray drive is stupidly excessive. Uncharted 2 uses a single-layered BD-ROM, and the only dual-layered PS3 game out there, that I know of, is MGS4. The next-gen Blu-Ray drive will probably start using dual-layered BD-ROM's for just about every game, with a very small handful of games being larger. As such, I can see the PS4's disc drive costing as much as a DVD-drive sold for at the beginning of this generation.

I wonder if Sony will use another graphics card with the PS4, considering they wanted to use nothing but CELL processors with the PS3.

I think PS4 will not be here before 2016 - so a lot of time for such speculations

Sony so far is the only company to have so much going against them and still be able to pull out this huge comeback over the past few months.

You OP says that it's doubtful the PS3 will overtake the 360 in sales. I don't think that is doubtful. I believe the PS3 will surpass 360 sales next year.

As for the PS3 Sony has shown that they are intent on using a core that could have up to 24 SPU's vs the PS3's 7.

Blu-Ray may have some slight tweaks when they launch the PS4. But pretty much Sony is going to make the PS4 just like the PS2. An Evolutionary step not a revolutionary one.

PS1 was revolutionary. PS2 was evolutionary. PS3 is revolutionary. PS4 will be evolutionary.
PSP and Go are/were revolutionary.

LOL. "Comeback". Aren't they still losing money on each PS3 sold?

Yes its a major comeback, look at the numbers of sales. It wiill probably never go below Xbox one again. So yes even if they are still losing money doesnt matter in the fact they just made a major comeback in the opinion of the majority (majority exclude biase xbox fanboy).

They might still be losing money on the PS3 Slim, but I don't think they are losing as much as before the slim. Or they could be losing the same amount and they needed the Slim to help get more people on board and still lose the same amount of money before the price drop.

BUT the PS3 is on fire right now. Sales are amazing for the "doomed and gloomed" system. People early this year was even talking about Sony needing to leave the gaming industry because of the poor sales of the PS3 compared to the competition and the previous Playstations. Now look at the Playstation 3. Amazingly strong consistent sales, going into the most competitive holiday the PS3 has given and a great advertising campaign.

So yes, a COMEBACK.