4K Bluray? Lol no. At least not mainstream ... and certainly NOT in 2012. They are not bringing out a new format this soon. 4K sets however, that likely is the future. The main rational for them is so you can more cheaply get 1080p 3D utilizing passive glasses.
Three months later and GE just announced that they are releasing an entire ecosystem to manufacture and player prototypes to display/use blu-ray Holographic 500gig disks. With minor modifications current blu-ray technology can access holographic micro patterns in the new GE blu-ray disk plastic. This means backwardly compatible with DVD and Blu-ray at little to no extra cost for the drive. Projections for the new drive are tentatively 2013.
I expect this for the PS4 and that puts the rumored by Digitimes PS4 being manufactured in 2011 for release in early 2012 not using this drive and confirms in my mind that it can't be a PS4. Add to this that forges are having problems with 22-28nm and AMD saying that their GPU would use bulk process not SOI which the current PS3 uses and there is no way a PS4 could be produced for 2012, it would draw too much power and get too hot at higher die sizes.
Yeah I'd love to see how they could advertise such a thing. Obviously it would play current games, but what would it do for future games? Would they require devs to make games scale? Would they even allow PS3.5-only titles? If it's the former, will the games really offer that much of an improvement that people would be willing to pay extra? Hardcore gamers sure, mainstream? Doubtful.
Obviously they'd need to do something more with that extra horsepower - not just add some effects, fps, and AA. Some sort of new OS that allows serious multitasking? Not the gimped in-game XMB we have today, but true multitasking? That might make it worthwhile.
If they do this properly then an upgraded PS3.5 with more memory will only be faster at some tasks than a PS3 with less memory and if Sony requires all games and applications to work on all models then games will be slightly faster or have a higher detail/resolution but work exactly the same. It is a Sony stated requirement that any hardware upgrades to the PS3 not obsolete older models. Faster Wifi, faster USB port supporting a higher res camera and more memory if done as I state would comply with Sony stated policy.
GamesCom is supposed to have Sony introducing a new PS3 chassis that is "functionally" the same as the current PS3 but with no price reduction. I take that to mean smaller die size that could have reduced the price having the savings used to add more memory and probably a faster USB port or/and built in support for a higher res camera with Kinect like abilities.
All this is highly speculative and assumes the Digitimes rumor has some element of truth in it.
Sony is going to need to produce a new PS3 using different encryption keys. This will require two separate firmware updates going forward (can be transparent to us). If they produce a very attractive PS3 upgrade, the PS3 core gamers (who purchase higher end games) will probably purchase this new PS3 (which accounts for the rumored 20 million to be sold the first year). The older PS3 can be used in another room to access AllVid, RVU, DLNA, Qriocity or the Internet and of course play games on the smaller TV on which you couldn't notice the possible lower detail.