Using the Cell would cut production costs on the PS4--a much-needed step for Sony, which loses money on every console--and enable PlayStation 3 developers to more quickly produce games for the PlayStation 4. The PS3 is renowned among developers for its unconventional internal architecture, making game production more challenging.

According to the report, Sony had planned to continue using the Cell architecture after the PS3 since the system's conception. The PS4 may run on an enhanced version of the 45nm chip already in production for the PS3. The 45nm chip would reduce power consumption, as would the projected use of standard DDR RAM instead of XDR RAM.

Using more current hardware would also allow Sony to compete with Microsoft and Nintendo by getting the PS4 to market more quickly. Of course, Sony may stay competitive in processing power by adding more cores to the PS4 version of the processor.

Sony CEO Howard Stringer has already noted that the PS3's development cost $3 billion and would be apt to stop the PS4 from similarly draining money from Sony's coffers.