PS4 Cloud Based?????

So unless I missed something at CES, Sony did not announce the PS4. Oh darn haha. But there was an article(think it was on Tom's front page but cannot remember) it said how one of the major console runners was not going to continue with consoles. And since Nintendo and Microsoft have already talked about their next generation consoles to some degree, I am guessing and so did the article that it is Sony. I doubt Sony would just drop out, so maybe they are thinking of not a console but maybe a console on the cloud which seems unlikely in the next year or two but within the next 3 or 4 it certainly seems plausible. Just wondered if anyone had any thoughts or any current up to date news that you could reference to squash or maybe add to this rumor.