|PlayStation Orbis Mock up (photo actually a PS3)|
Today Kotaku posted an article saying that "a reliable source who is not authorized to talk publicly about next-gen hardware but has shared correct information with us before" told them that the next PlayStation has the codename Orbis. I checked and found out that orbis is Latin for circle, orb, ring, disk, orbit, coil, round, or rotation. The article went on to say that if you combine it with Vita (the name of Sony's handheld game console) you get Orbis Vita which means "The circle of life." This could symbolize connectivity between the PlayStation Vita and the PlayStation Orbis (or PlayStation 4).
The article also says the PlayStation Orbis currently has an AMD x64 CPU and an AMD Southern Islands GPU that's capable of displaying games at a resolution of 4096x2160 and 3D games in 1080p and will be released in 2013. And there's some bad news: no backwards compatibility and no used games (games will be available as a Blu-Ray disc or as a download--either way it will be locked to a single PSN account). Not only that, you must be connected to the Internet, and if you aren't your PlayStation Orbis won't turn on.
Thankfully this is just a rumor and has not been confirmed by Sony. I'm personally thinking it's all fake.