What?Well, this would certainly be a kick in the pants, if it's true. From Digitimes:
Sony will have Taiwan-based partners begin production of PlayStation 4 (PS4) featuring body movement-based control like Kinect at the end of 2011 for launch in 2012, according to Taiwan-based component makers.
Foxconn and Pegatron Technology, assemblers of PS3, will undertake assembly of PS4 as well, the sources pointed out. The planned shipment volume of PS4 in 2012 is at least 20 million units, the sources indicated.
I think that would be a terrific move, if it's true. It seems very unlikely, though, given how deeply in the red Sony still is with the PS3.
Alternatively, perhaps it's my assumption that Sony would flog the PS3 until they recovered every last cent that they could that's mistaken.