Sony Computer Entertainment is set to release PlayStation VR before the year ends. In order to compliment the powerful features of the VR hardware, several tech websites say Sony is developing an improve version of PS4. Could this be the much-anticipated PlayStation 5 (PS5)?

Here's the latest round-up of update about PS5 console release date, price and rumors on the web.

Kotaku reported that Sony is working on an improved version of the PlayStation 4. The next-generation of PlayStation hardware is rumored to feature improved graphics and 4K support. The same source also said the much powerful PS4 would have an upgraded GPU to run games smoothly on PlayStation VR.

The current PlayStation 4 can only produce 4k photos and videos, but cannot support 4K resolution for games. 4K resolution is approximately four times the pixel size of 1080p, which is the standard of today's video games.

A much-improved PS4 would also allow the machine to go head-to-head with PCs in the expanding market of virtual reality. With powerful GPU, the new console could easily compete with the more expensive Oculus Rift and HTC Vive virtual reality headsets, which requires high-end PCs to work.

Interestingly, the upgraded PS4 console is unofficially called as PS4.5 or PS4K.

At last week's Game Developers Conference in San Francisco, Sony reportedly discussed the hardware with developers and business people.  The meetings are centered on how the hardware would work. There were also mentions about its increased horsepower and improved resolution.

Industry experts are still clueless when this upgraded machine will ship to buyers, nor how much it will cost. The price of PS4 dropped from $400 to $350 last fall, so this new PS4.5 might be priced around $400.

As always, we advise our readers to take the PS5-related rumors with a grain of salt. Sony has not yet released any official announcement about the hardware. Kotaku website tried to confirm the rumors with Sony, but the company responded with an email. "We can't comment on rumors or speculation."

For now, one thing is clear: Sony is exploring many possibilities of launching a more powerful console than PlayStation 4. With both Sony and Microsoft possibly entering new territory and Nintendo's NX on the way, 2016 should be an exciting year for gamers out there.