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A few unconfirmed rumors from various sources have said that Sony is working on a "PlayStation 4.5" that includes a more powerful GPU and supports up to 4K resolutions. Kotaku's very own Patrick "Scoops" Klepek got this news out earlier today and the fan reactions have not been super great.
Based on conversations with developers who have spoken with Sony, this ‘PS4.5’ will include an upgraded GPU both to support high-end 4K resolution for games and add more processing power that can enhance the games supported by PlayStation VR, the headset Sony will launch this fall. It’s unclear if ‘PS4.5’ is an official name or just a nickname that developers have been using. One developer jokingly called it the ‘PS4K’ while telling me about the device.(...)

We’ve also heard that at this week’s Game Developers Conference in San Francisco, Sony held meetings with developers about the hardware and how it would work. As we were chasing down this story, coincidentally, Kotaku UK EIC Keza MacDonald overheard some developers casually talking about the machine while on line at GDC. They mentioned the name ‘PS4.5’ and discussed its increased horsepower, mentioning both 4K resolution and PlayStation VR.(...)

There are still lots of big questions surrounding the device. Will Sony allow people to trade in their existing PS4s to buy the new machine? How will developers cope with releasing games on multiple types of hardware? Could some games only support PS4.5, as is the case with the New Nintendo 3DS? When this PS4 goes on sale, will Sony continue to sell old PS4 hardware at a lower price? How can Sony manage all this without fragmenting the market?

Of course, this should be taken with a bit of salt. If Sony does go ahead with this move, they know that they will undoubtedly upset countless fans around the world that bought the PlayStation 4 over these past couple of years. A trade-in or trade-up program sounds nice but it's so far been unheard of outside of the world of smartphones.

Meanwhile, the same article notes that there were some rumors about Microsoft possibly doing something similar with an updated Xbox One. However, recent public statements, including some made by Phil Spencer, say that they currently have no plans to do so.

In the past, consoles have evolved within a generation but the iterations were minor. The most recent exception seems to be the update made to the 3DS when Nintendo released the more powerful New 3DS. Upgrades on this level for typical consoles is unheard of.