TechRadar reports:

And the company is looking to cut costs

By Marc Chacksfield

Sony has begun development on the PlayStation 4, with the games giant confirming that work on the console was already underway.

In Sony's year-on-year results of its Networked Products & Services division – which comprises the PlayStation brand and PCs – Sony hinted that it was working on the PlayStation 4 but would not give any more details.

PlayStation 4 plans

"For the home equipment the PS3 still has a product life," said Sony's Masaru Kato.

"But this is a platform business, so for the future platform – when we'll be introducing what product, I cannot discuss – but our development work is already under way, so the costs are incurred there."

Kato also explained that some cost-cutting will happen with the development of the PS4.

Speaking to investors, he said: "It is no longer thinkable to have a huge initial financial investment like that of the PS3."

This makes sense considering the amount of money Sony pumped into the PS3 in its initial development phases.

It was only with the launch of the PS3 Slim that Sony could actually count on making a profit with its next-gen games console.

Via CVG and Eurogamer

It will likely suck and be so full of DRM that hackers will target it upon launch

Apparently we don't need blu-ray. PS3 games (FFXIII aside) don't even make use of the capacity available and majority of multi-platform games are on par with each other or perform better on the Xbox, graphically speaking. We won't even talk about PSN. #justsaying

I'll give you God of War but thats done now and Uncharted does look amazing but don't come around here with your Killzone & Infamous games, there are better multi-platform games in their genre. They just made for PS fanboys who want to be different.
Also you can't rule out PSN, all games these days are made for multiplayer and if that doesn't work than whats the point?