Reddit user Flight714 has put forward the best theory for PlayStation Neo’s existence so far. After analysis of AMD reports as well as recently leaks of PlayStation Neo specs, he has come to the conclusion that Sony were forced into making the PlayStation Neo. The decision to create the upgraded console hinges on the fact that AMD is preparing to streamline its production process to support new 14-nanometer transistors as apposed to the existing 28-nanometer transistor. Normally, Sony would just use a die shrink technique to fit this old chip into the new size but AMD is also pairing this shift with the introduction of new Zen core CPUs.
These two changes essentially put Sony into a tough spot. They could continue producing the PS4 in it’s current capacity, but they’d have to continue producing a totally custom production line, which would be much more difficult than joining AMD’s new standard. Sony decided to take this in their stride and create a console that would improve the overall performance of the PS4 console.
This theory sounds completely plausible. It’s incredibly likely that we might see the reveal of the PS4 Neo as early as E3.
