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First off, it's no longer PS4 Neo - Sony revealed the new, more powerful console will be called PS4 Pro instead. Second and more important, the PS4 Pro will cost $399 when it launches on November 10.
source: http://www.gamesradar.com/ps4-pro-price-release-date/
source: http://www.eurogamer.net/articles/2016-09-07-sony-announces-playstation-4-proSony's chief console maker Mark Cerny said PS4 Pro has "more than doubled" the GPU power of the standard PS4, and that it uses AMD's Polaris architecture. The clock-rate of the CPU has been boosted but he didn't say what to.
The PS4 Pro will have a 1TB hard-drive.
Sony's message with the PS4 Pro was clear, and repeated: it is a this-generation machine for people pursuing 4K gaming, virtual reality and HDR gaming - the hardcore technology enthusiast. By naming it PS4 Pro, Sony is declaring the generation it belongs to.
PS4 Pro will play existing PS4 games as you know them now, Cerny assured us, and he said there will be ways to transfer games across.
His presentation went into detail, with examples, of why 4K and HDR are the future, and what that looks like on PS4 Pro. Cerny talked about "forward compatibility", and showed how existing games can and are being patched to look better on PS4 Pro. He said over a half-a-dozen first-party games have "forward compatibility" patches in the works.