If PS4 is a $1 billion project, that has to be with a view to wider technologies IMO, as part of the One Sony vision. An SOC architecture that can be used in other devices, or something. Cell wasn't efficient enough in graphics work to do that, but an SOC with GPU would be. As BoardBonobo says, the current financial siuation doesn't necessarily mean Sony are our of pocket to develop PS4, because it could be the expense of developing PS4 that has them in this situation. The concerns come post-PS4, and what Sony can do with the technologies they've invested in. If there isn't a landmark system they can leverage to gain market share in various markets, then they're sunk.