Aibo 4.0; dog-chassis connecting through wifi/bluetooth to PS3, transmits over visual and positional information from cameras/IR sensors to the console which runs the number-crunching stuff on its Cell processor, then transmits back movement information to the dog's on-board CPU which carries out the instructions. Wow! 100x "smarter" dog in an instant!
Given their current situation, I would imagine Sony is going to focus on their core business (ie games and entertainment) much more than before, meaning AIBO getting dumped along with other fancy but expensive pet projects. It's what the article says anyway.
Better start stocking up on spare parts -- availibility guaranteed only for the next seven years