Sony announced the news at its E3 2014 Press Conference, quickly followed by Rockstar unveiling a full trailer on YouTube (which you can see above).
Along with the update to full-HD, PC users will have additional access to an advanced set of video editing tools, undoubtedly resulting in a new wave of base jumping videos hitting YouTube.
There's no word on exact pricing -- or indeed when Grand Theft Auto 5 will launch on next-gen. But Rockstar has said that the game will be released around Autumn or September.
Elsewhere Sony also announced a whole string of exclusive titles for the PS4 including a new Mass Effect game and Uncharted 4: A Thief's End.