Mark Rein, Vice President and co-founder of Epic Games, has clarified on his Twitter that the current crop of consoles won’t be getting the Unreal Engine 4.
This isn’t to say it’s bad, since the PlayStation 4 will certainly benefit from the visual horsepower of the Unreal Engine 4, but this is likely due to limitations within current hardware that hinder it from utilizing the new engine. The current-gen consoles still have something in the ball park, since Rein reps the Unreal Engine 3 as an "awesome engine" for them.
Regardless, the inability to use the next Unreal engine on current hardware is a testament to what the new engine has in store, and many of the early tech demos are showing something wonderful in what the Unreal Engine 4 can do.