Sony's PlayStation 4 Has Potential, but Major Details Are Still Unknown

Last night, at its much publicized event at the Hammerstein Ballroom in New York City, Sony (SNE) announced the next phase of its "war against reality" by introducing its newest console, the PlayStation 4. Considering that in the last generation Sony fell from the top of the industry to a disappointing third place, this new console has a big role to fill in helping the company retake the fan base it lost when Microsoft's (MSFT) Xbox 360 entered the scene in 2005. Journalists and consumers alike were expecting a bevy of new announcements and confirmations on the system's capabilities and launch software, and for the most part they were not disappointed, though a lot of the facts that will determine the system's success are still unknown.


Game developers will be happy to know that the next PlayStation console will forgo the cell processing design that made producing for the PS3 such a pain, as the PS4 will return to using a more PC-based setup. Specs for the PS4 included an X86 CPU, a powerful AMD APU alongside an "enhanced" GPU, and 8 gigabytes of GDDR5 system memory. The system will also be featuring a custom chip that can update system and game files in the background or while the console is asleep, and download software in parts so one can start playing a selected game while it is still downloading. The PS4 is accompanied by the upgraded Dual Shock 4 controller, which now features a touch pad, and a button for instantly sharing content online.

In an effort to make its system much more social, the PS4 will also be heavily integrated with social networking sites such as Facebook (FB) and Twitter via the share button. Gamers will essentially be able to broadcast videos of their gameplay with the click of a button, allowing friends to watch at their leisure or comment in real-time, without having to edit and upload content for sites like YouTube (GOOG). Lead system architect Mark Cerny stated that the feature will also be integrated with smartphones and tablets, so it's likely that gamers will have access to feature on their iPads (AAPL) and Android phones as well.

As many expected, Sony's acquisition of the Gaikai is helping to upgrade the PlayStation Network. Gaikai's CEO Dave Perry mentioned that the new PSN will allow a player to instantly try games for free, allowing someone to play a section of any game before buying it. In addition, the system will get to know your tastes and will automatically suggest titles after noticing your affection for a certain developer or genre.

Similar to the design of Nintendo's Wii U (NTDOY), Sony's PlayStation Vita will also be fully integrated into the PS4, allowing gamers to play PS4 games on the go while other family members are using the TV. Perry stated that the Vita will become "a client with remarkably fast connection speed", which will no doubt boost the struggling handheld's value in the near future. Unfortunately, because of switch back to PC processors, it's already been announced that the PS4 will not be able to natively play PS3 games. However, Perry stated it is the company's intention to use Gaikai's streaming services to eventually allowing gamers full backward compatibility with titles from Sony's previous consoles.