No, this isn't a homophobic slur or a slight against PlayStation. This is a customized rainbow console created in support of pride week in Sweden from retailer Webhallen, via CVG. It's being auctioned off to support The Swedish Federation for Lesbian, Gay, Bisexual, Transgender and Queer Rights (RFSL).
The "GayStation 4" was designed by the Federation and the auction began at $400. Right now, the console has reached about $2493 at the time of my writing this post, so it's steadily reaching a hefty sum.
From the Webhallen post, these inspirational words ring out:
I only wish the console had a little brighter colors. It's kind of a dark rainbow.