The console will be completely separate from the PlayStation 4 that has sold roughly 36 million units worldwide. The upgraded PlayStation's advanced graphics and power would still take advantage of similar software to the PlayStation 4, according to the report.
A new console this soon after the PlayStation 4 would be a big step for the video game industry, which is often stuck in five to seven year console cycles.
Kotaku previously reported the upgrade will bring high-end 4k resolution. The release is expected before the PlayStation VR headset in October for $399.
The Oculus Rift and HTC Vive use high-end PCs for power, giving Sony a reason to need an enhanced console. The PS4's price dropped from $400 to $350 in 2015. It's not clear if the new PlayStation will take the $400 spot or cost more.
The founder of the Oculus Rift, Palmer Luckey, discussed how important a smooth launch of the new VR headset is in an interview with Wired over the weekend. Luckey, considered a VR visionary, spends hours a day opening unopened Rifts envisioning himself as a new customer.