Just to go into a little more detail, I feel from various (and conflicting) rumours there are three possibilities:
IBM PowerPC A2 based
This fits the four-cores, four-threads-per-core rumour, and the 1.6GHz rumour. The cores are about 6.58mm² on a 45nm process, so on a 32nm process you could fit four cores and 8MB eDRAM cache within 30mm² or so, which is pretty small for a console CPU (about the same die size as Wii U's 45nm "Espresso" CPU). Power draw would be around 10W at 1.6GHz.
AMD Jaguar based
The Jaguar architecture is designed to go up to 2GHz, so 1.6GHz would be a reasonable clock for it in a console environment. It's a single-threaded architecture. At 28nm each core (including 512KB cache) is about 3.2mm². Designed for 2-4 cores, but an eight-core chip would come to about 30mm² or so as well. I can't find data on power draw, but ~10W would probably be a good guess here also.
AMD Bulldozer based
I'm including Piledriver, Steamroller, etc. here. The "eight-core"* Bulldozer is 315mm² at 32nm, which is fucking huge for a console CPU (you'll notice that it's literally ten times the size of eight Jaguar cores). It pulls 125W at its stock speed of 3.6GHz, and if they were using it in Durango they'd have to clock it down massively to prevent it melting the console (possibly even to 1.6GHz). In theory they could use a "four core" variant at about half the size, which would put it at roughly the same size as Xenon was at 90nm, but still be somewhat of a power-hog.
*I put eight-core in quotation marks because they aren't really eight-core chips. They have four modules on-board, and each module is something half-way between a dual-threaded core and two independent cores. A "four-core" variant would then be a dual-module variant, in reality.
There are also the rumours of an Intel chip, but I don't put much faith in it, as the logic seemed to be "It has AVX support, therefore it must be Intel" (not true, both Jaguar and Bulldozer support AVX), and it claimed it was an 8-core chip. Intel's only 8-core chips are extremely expensive Xeon server processors, and the only architecture they could use to cram 8 cores in a console-friendly die is Cedarview (Atom 32nm), which
doesn't support AVX.
The other thing you'll notice is how the two most likely scenarios involve very small dies running on very few watts. This comes down to something I talked a bit about in the Wii U technical thread; transistor efficiency:
Of course, it's always better to have a more powerful GPU, and it's always better to have a more powerful CPU, but for a company like Nintendo, it's all about transistor efficiency. If they're deciding which component should be running physics code, they're choosing between adding X number of transistors to the CPU (lets say adding in some beefy SIMD units) and adding Y number of transistors to the GPU (lets say more SPUs) to get the same amount of performance. What they'll find is that X > Y, and that it costs more (probably a lot more) transistors to get the same performance out of the CPU as out of the GPU. Hence why they've combined a tiny CPU die with a far, far bigger GPU die, because the GPU's simply giving them more bang for their transistor buck. The same is true with heat/energy usage. They've got a finite (and pretty small) number of watts the system has to be able to run off, and they have to choose which gives them the better performance per watt, which is once again the GPU. Given the clock rates and die sizes, the GPU is obviously using up the vast majority of the system's power, and they've set it up like that because giving those precious watts to the GPU allows it to do more than the CPU would with them.
Replace Nintendo with MS or Sony and the point is still valid. Although their transistor and heat budgets will be much higher, they're still trying to optimise within finite budgets, and with modern GPU technology it makes sense to push the significant majority of transistors and watts to the GPU. Perhaps even more so for MS and Sony, as they're apparently using the more compute-friendly GCN GPU architecture.