Detailed, ideal specifications
In detail. The Playstation 4 will need to cost $400 at launch, and these are its ideal specifications
The main CPU - An Intel "Ivy Bridge", 3rd Generation Core i7 processor, the 3770t:
4 cores, 3.9 ghz, 2 threads per core
8 MB total L3 cache, 256 Kbytes L2 cache per core, 64 Kbytes L1 cache per core
1.4 billion transistors, 492 million going to the memory cache, 908 million to the logic
77 watts usage, 22 nm transistor gate size
Manufacturing price - about $125
Max memory bandwidth - 25.6 GB/s (with 4 GB DDR3 main system memory)
http://ark.intel.com/products/65719/Intel-Core-i7-3770-Processor-8M-Cache-up-to-3_90-GHz
It's pretty small and takes up little heat - it's under the Corsair fan:
The CPU's Vector Co-processor - A Power7+ CPU
8 cores, 4.4 ghz, 4 threads per core
32 MB total eDRAM L3 cache, 256 Kbytes L2 cache per core, 64 Kbytes L1 cache per core
1.2 billion transistors
200 Watts, 45 nm silicon-on-insulator, 567 mm^2 package size
Max memory bandwidth - 100 GB/s
Manufacturing price - about $150
It will need 4 GB of DDR 3 Memory
This is it in its ceramic package. It requires minimal cooling, but it does take up a lot of space:
The GPU - An Nvidia "Kepler" GK106 GPU - which is used for the Geforce GTX 650 TI card
768 SIMD cores, 928 mhz
1 GB of RAM, GDDR5
86.4 GB/s memory bandwidth
2.54 billion transistors
110 watts usage, 28 nm transistor gate size
Manufacturing price - about $60.00
Thus the next generation sees a triumvirate for the console - the main CPU, the CPU's vector co-processor, and a regular GPU. All three are necessary this generation. You can have very advanced physics simulations with this processor.