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'PS4 Neo' release date news: Device's price revealed; VR headset to have the same price tag

Playstation 4 (PS4) Neo will not be much pricier more than its specs sounds. | Reuters/Yuriko Nakao

The PlayStation 4 Neo, also known as PS4.5, is expected to be priced at $400, which is $50 more than the price of the current-generation Sony console. Judging by the rumored specs and features of the PS4 upgrade, gamers will get what they pay for and more.

The PS4 Neo will reportedly pack an upgraded graphics processing unit (GPU) in the form of an AMD GCN (graphics core next), which should make for smooth gameplay performance and 4K screen resolution.

To make the PS4 Neo more monstrous, it will be equipped with an 8-core Jaguar central processing unit (CPU) that will boost the processing speeds up to 2.1 GHz. PS4 fans should notice the changes from the 1.6 GHz on the current console.

Sony kicks it up a notch in the hardware department with faster memory. The makings of the PS4 Neo will also be powerful enough to support Virtual Reality (VR) gameplay. Sony will also release a VR headset to go with the upgraded PS4 console.

The headset, expected to be revealed at the Electronic Entertainment Expo (E3) 2016, along with the PS4 Neo itself, will purportedly be the cheapest Sony will offer at $399.

Talks about PS4 Neo started way back in October, when Sony Computer Entertainment senior vice president Masayasu Ito promised the launch of a "high-performance" PS4 model.

Previous reports say that development prototypes of the PS4 Neo were already being sent out to developers for a test drive as early as April. A so-called "second-generation" kit is expected to drop this month.

With regard to the games being compatible with the PS4 Neo, it is said that game developers get to choose whether gamers can transfer saved data from games in the regular PS4 to the new console. Also, titles will likely be required to be PS4 Neo-compatible after its release.

The PS4 Neo is expected to be unveiled at E3. During the convention, a new version of the Xbox One dubbed Xbox One Slim is rumored to be launched as well.