Speaking to to the Financial Times, the president and global chief executive of Sony Interactive Entertainment said that the new system will be sold alongside the existing PS4.
"It is intended to sit alongside and complement the standard PS4," he told the FT, "we will be selling both [versions] through the life cycle."
The new console will pack strong graphics in order to output both video and games at up to 4K resolution.
House also noted that "Neo" will be more expensive than the base model, but would not give a price, a release date.
He says it will only be a "small but manageable" amount of work to develop games for the PS4.5 and the PS4 together, and that he expects many or all new games going forward to work on both systems. He compares the idea of an upgraded PS4 to new models of PCs and mobile phones being released with increasingly frequency, a narrative we’ve heard a lot in regard to these new consoles.
However, do not expect to see the new device at E3. This means that it is not sure whether the PS4.5 could debut this fall, along with the release of PSVR, as it was expectted.
Microsoft is also rumored to show the Xbox One Slim at E3, and push plans to show the next generation console Xbox "Scorpio" in 2017.
What's left to see is whether Nintendo will debut the NX at E3, as they would have owned the entire news cycle with that kind of reveal.