How can ps3 play next gen games?

Ps3 can play next gen games like Watch dogs, advanced warface? How can it do that, the system has about 512 mb ram and can still play high end games without lags, is it because of the bios ps3 has? And should i buy a ps3 slim since my computer cant play some high end.
If not then can you give me some detail about some specs that can play games like watch dogs next gen games on medium/high setting under 1000$
Apperciate the answers
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More about ps3 play gen games
  1. The amount of RAM is only one factor.

    In a games console, the processor and all the other hardware is optimised just for games and has been extensively tested to ensure that all the components work together.

    Whereas on a PC, the components come from several different manufacturers, Windows itself saps a lot of the resources even before the game starts, that's why a games console has to be the number one choice if all you want to do is play games without any technical issues to sort out.
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