We have to see if this rumor turns out true, but if it does, the PlayStation 4 would be packing a punch. The PS4 (codenamed Orbis) had a lot of information leak out last week, but the hardware specifications were a little dry aside from mentioning an AMD CPU and GPU. Today, sources have told IGN the PlayStation 4 will be running an AMD A8-3850 APU and HD 7670 GPU, both of which would give the PS4 plenty of power. This would give the PS4 the power to use the integrated graphics on the APU or the discrete graphics from the 7670, which would help boost the graphics capabilities. The HD 7670 is simply a rebranded version of the HD 6670, which was reported to be used in the Next Xbox, so at least the two consoles would have similar power. The HD 7670 would have a 1GHz core clock and 1GB of VRAM, plus it's HDMI 1.4a output would help power the PS4's rumored 4K resolution potential.
The A8-3850 is clocked at 2.9GHz across four cores, plus it packs an HD 6550D integrated graphics chip. The HD 6550D and the HD 7670 could work together in Crossfire to help deliver improved performance, since the HD 7670 is only capable of running Metro 2033 at 30 frames per second at 1080p. Combining the two graphics chips would allow for better looking games, but like all the consoles it would stand to reason the games would be optimized to run without issue on the PS4. Remember, all of this is just rumor for now, so everything could change if and when Sony announces the PlayStation 4.