Sony's PS3 successor will launch in time for the 2013 holiday season, and is currently being developed under the working title of Orbis, a trusted source has told Kotaku.
Orbis, which means circle/ring in Latin, is also one of the URL prefixes for accessing Sony's development network, alongside NGP (Next Generation Portable), PS3 and Vita.
It will be powered by an AMD x64 CPU and an AMD Southern Islands GPU, enabling it to display games at 4096 x 2160, "which is far in excess of the needs of most current HDTV sets". The same graphics cards will be used to power high-end PCs releasing later this year.
Orbis will also be capable of playing 3D games in 1080p, compared to the PS3 which can only display 3D in 720p.
The next PlayStation will not be capable of playing PS3 games, however, and is said to feature a DRM system, requiring players to lock a newly purchased game to their PSN account.
Furthermore, an online account will be needed to activate games, restricting their pre-owned value.
The latest report echoes rumours that AMD is working on a brand new "hush-hush" chip to power the PlayStation 4.
Despite speculation that it will unveil its new console at this year's E3 event in Los Angeles, Sony has distanced itself from announcing the PS4 in 2012.
Instead, it will concentrate on the PS3 and recently-released handheld the PlayStation Vita.
Watch the UK PlayStation Vita ad below: