The Playstation Neo is real - Sony confirms 'PS4.5' console will be released later this year and have support for 4K TVs

Rumours that Sony is working on a more powerful version of the PlayStation 4 have been confirmed.

CEO Andrew House told Financial Times in an interview that the console will have improved graphics, a faster processor, support high definition 4K resolution, but will be more expensive.

Code name 'Neo', the console is designed with hard core gamers in mind, but Sony wants 'to ensure they have a full range of the best experiences on the new system' before it is released.

The first time gamers heard the code name 'Neo' was mid-April when GiantBomb reported they received confirmation from multiple sources about a possible upgraded version.

But coming from Sony's CEO, Andrew House, this means things are moving along and PlayStation fans will soon be lusting after a new console. 

This updated version will be the first time Sony has ever released a new console in the middle of a cycle, as it usually follows the same timeline as smartphones and PCs.

'It is intended to sit alongside and complement the standard PS4,' House said.

'We will be selling both [versions] through the life cycle.'

Not only will gamers be graced with new hardware, but the system could be designed with PS VUE internet TV and a PS Music partnership with Spotify.

Rumors first circled the web once word got out that Japanese firm was in discussions with developers about creating games for the improved hardware.

But as many have heard, all of the games released for Neo will be compatible for the PS4.

'All games will support the standard PS4 and we anticipate all or a very large majority of games will also support the high-end PS4,' said House.

After the announcement, some gamers are hoping to get a peek at the console suring the E3 gaming conference in Los Angeles next week, where Microsoft is also set to debut the latest Xbox One console.

But House said that Sony would not be unveiling Neo next week and decline to say when or at what price the console would go on sale. 

GiantBomb released a lot of detailed information regarding Neo in April, saying it features a higher clock speed, improved GPU and a higher memory bandwidth, but the firm says it will not divide the 35 million plus users of the original PlayStation 4.