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Due in spring 2006, the PlayStation 3 is powered by the "Cell" processor, which Sony boasts makes the machine 35 times more powerful than the PlayStation 2. It will support Blu-Ray storage devices, which hold significantly more data than today's DVDs, as well as seven wireless controllers, and has outputs for two high-definition televisions (HDTVs).
Sony (Research) did not announce whether it plans to launch the system first in Japan, then months later in North America, as has been its practice with previous PlayStations, or simultaneously throughout the world. It also did not disclose an estimated retail price for the machine.
"All of us at Sony Computer Entertainment have been waiting a long time for this moment," Kaz Hirai, President and CEO of Sony Computer Entertainment America, said at a news conference.
"We have always attempted to do things differently. Our vision has taken us to unprecedented levels of success and innovation. Just keeping up with conventional technology is not enough for us."
Sony's announcement came the same day that Microsoft, its smaller rival in the video game business, announced that up to 40 new titles for its new Xbox 360, will be available in time for the holidays.
Sony's PlayStation 3 will be fully "backward compatible," playing all existing PlayStation and PlayStation 2 games. It will come equipped with a Blu-Ray DVD drive and support the sharpest format for HDTV, 1080p.
The machine itself is about the same size as the current PlayStation 2 with a rounded, convex look. Sony showed off the machine in three colors: black, silver and white.
Wireless controllers using Bluetooth technology will be standard. Sony (Research) said the system will support up to seven simultaneous players, a significant boost from the four standard today.
Additionally, PSP owners will be able to use their handheld gaming device as either a controller or an additional screen, perhaps viewing tactical or statistical information that ties in with the game on your television.