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According to reports from Kotaku, Sony is working on a more powerful PlayStation 4. The report says the upgraded PS4 would come with increased graphical capabilities to run games at 4K resolution.

Developer sources told Kotaku about the improved PS4. It's not currently known if current owners will be able to upgrade their hardware or if this will be a brand new system altogether. Whatever the case is, Sony has apparently started talking to developers about it.

According to Kotaku, the "PS4.5" will come with an upgraded GPU that will support games running at 4K resolution and enhance games for PlayStation VR. Kotaku notes that "PS4.5" might not be its official name--it could be a nickname used by its developer sources.

Kotaku claims that it was able to confirm the news with at least four separate sources. However, their sources are unsure of when it will come to market and how much it will cost.

Meanwhile on the other side Xbox is also hinting at a hardware upgrade.
Xbox boss Phil Spencer said he believes that Windows 10 could be used as a ubiquitous operating system that unifies all its devices, while the various hardware it runs on evolves, similar to the way PC are upgraded.
"We see on other platforms, whether it be mobile or PC, that you get continuous innovation that you rarely see on console,' he said. "Consoles lock the hardware and the software platform together at the beginning of the generation. Then you ride the generation out for seven or so years, while other ecosystem are getting better, faster, and stronger. And then you wait for the next big step function."

He continued:
 "When you look at the console space, I believe we will see more hardware innovation in the console space than we've ever seen. You'll actually see us come out with new hardware capability during a generation allowing the same games to run backward and forward compatible."

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