In addition Sony is working on improving the output experience so that the device can become a true home entertainment centre eliminating the need for a media centre. "We have even looked at a Sony home server based on Playstation technology. This would allow consumers to connect home automation devices to the Sony server while also delivering online gaming and access to an extensive movie and music library" said one Sony source.

Ken Kutaragi, the retiring chief executive of Sony Computer Entertainment said in an interview last week that he clearly understands how the PlayStation game consoles should evolve in the next three generations, or fifteen to twenty years from now. He also said that in future it will be possible to create fully Internet-based game consoles.

"As a matter of course, I have the vision of PlayStation 4, 5 and 6, which will merge into the network," Mr. Kutaragi said. Earlier this year when Kazuo Hirai became the second president of SCEI and chief operating officer, some analysts said that Sony may not launch yet another game console and the PlayStation 3 may become the last one. On this Mr. Kutaragi, who is also known as "the father of PlayStation", says that future consoles may be network-based, which automatically reduces the cost to build such machines.

"The design concept of the Cell processor is the network processor," Mr. Kutaragi said. "When the PS3 was introduced last year, the network environment was not ready for a net-based game console. Now it has become possible, so why not enter?"

The outgoing leader has faced a lot of criticism from observers for the PlayStation 3, the latest game console by Sony Group, as the machine is expensive to manufacture despite of the fact that initial batch of games are unlikely to become bestsellers. At the same time, technical advantages of the arch-rival – Microsoft Xbox 360 – and difficulty to develop games for the Cell processor used in the PlayStation 3 have resulted in losing exclusive titles with game developers.

Kazuo Hirai, who is believed to have better relations with game developers than Ken Kutaragi may fit very well into the Internet-based game console strategy, as technical capabilities of game consoles may play much less significant role going forward.