Let me start out this giant story by simply stating that much of this is rumor, while some of it is confirmed as fact. This is a culmination of a slew of news stories that have been rapidly spreading across the net all gathered into one spot. If something is a rumor in this piece it will simply be stated as such to avoid confusion. Here is what we know is for certain: Sony is holding a conference on February 20th to discuss the "Future of PlayStation." Essentially, as many have been reporting and confirming (though still a rumor), the PlayStation 4 is getting it's reveal that day.
Everything else from this point on has not been confirmed and as such should be treated as a rumor, but it still comes from reliable sources.
So to get right into it, according to sources that are reporting to The Sun in the UK, the PlayStation 4 (code named Orbis) will have 10x the power of the PlayStation 3. How this power is achieved isn't exactly stated outside of 8 computer chips in the CPU, which is a technology that has been around for gaming PCs for the past year. It's a pretty expensive CPU design as it stands today and note widely supported just yet. The details will be 4x as detailed as the PS3, but that shouldn't be a surprise. 4k TV's are entering the market and anyone who has the money to lay down on one will naturally enjoy the ability for the PS4 to support it. No surprise in that, outside of the fact that it's still rather expensive and wont be common in homes for probably 10 years.
It will feature 3D support (so does the PS3 and Wii U) with a newly designed controller. It will support PS3 controllers. You should be able to play the PS3 library on it as well, though shouldn't that just be standard by now?
Another interesting tidbit tossed at the end of the editorial is that apparently all rumors right now are pointing to a June release of the new Xbox. This will likely be shortly after E3 if it does indeed occur. This is definitely a lot to process. There are some out there claims of the PS4 blowing most gaming PC's out of the water, yet it has it selling for 300 euros. The numbers don't really add up. There is also the claim of replacement for Blu-Ray to the next gen of HD discs, but the problem is that Blu-Ray is only now seeing penetration and it's not standard yet in the industry. Thus, introducing something new is risky. Though, it could be Blu-ray upgraded for 4k TVs, which I suppose makes sense.
In the end we will know about some of this at least really soon. The rest? Time will tell.