Overnight Sony sent out invitations to an event in New York where they will "talk about their future PlayStation business".
The device which is set to be called PlayStation 4, codenamed Orbis, could cost Australian gamers over $600. Retailers such as JB Hi Fi and EB Games believe the device if launched in the first half of 2013 could stimulate floor traffic and be a major boost for retailers, however most retailers that we have spoken to claim that the new device will be launched in the second half of the year, "closer to Xmas" than the first.
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The device that will feature 8 processors will be backward compatible according to sources.
Sony has officially declined to say whether it would release a new product at the briefing on 20 February.
A Google search for "Sony Feb 20 PlayStation" returned more than 7 million hits.
Several UK newspapers claim that the last time Sony held a PlayStation event, in January 2011; it presented a prototype of its handheld Vita console.
The last PlayStation console launch was six years ago. If Sony does launch a new console analysts claim that it could put pressure on Microsoft to launch their much anticipated new Xbox
In the current market Sony and Microsoft now have to contend with competition from hand-held devices made by Apple, Samsung Electronics and Nintendo.
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Analysts expect that tablets and other mobile devices will match the power and graphics of today's games consoles within a few years.
Struggling under competitive pressure, Nintendo on Wednesday cut its sales target for the Wii U, successor to its 100 million-selling Wii, to 4 million machines by the end of March from its launch in November, compared with an earlier forecast for 5.5 million.
The ultra-HD quality graphics on the new device which will have a screen for movie viewing will be four times as detailed as the PS3's standard HD, it will also be touch enabled.