The hotly-anticipated PlayStation 4 has been unveiled by Sony as a "bold step forward" for the gaming giant.
At an event in New York, which was streamed around the world, the Japanese electronics company confirmed widespread rumours of the next generation console.
PS4 system architect Mark Cerny said the fast new system will have a 8 gigabytes of memory and an updated controller called the DualShock 4.
The controller has a touchpad, a headphone socket and a light bar which can be tracked by a camera to detect where the player is.
The expert said the new pad will give the gamer a "tighter sense of control".
The new console has been praised by gaming enthusiasts as having the potential to be "game-changing".
It is the Japanese electronics giant's first major game machine since the PlayStation 3 went on sale in 2006.
Andrew House, the group chief executive of Sony Computer Entertainment, told the audience and millions of people on the internet: "Today marks a moment of truth and a bold step forward for PlayStation as a company.
"Today we'll show how we are strengthening the PlayStation ecosystem."
He spoke of "magical experiences" and worlds that will "come alive" in a computer games experience that had the the gamer at its heart before giving a glimpse into the "future of play".
Technology enthusiast Alex Simmons, the UK editor of gaming website IGN.com, said the announcement of the Playstation 4 with its "incredible cinematic visuals" was a warning to its rivals, adding that Sony's innovations could be "game-changing".
He said: "This was an a show of strength from Sony and a powerful warning to its rivals about their next-generation gaming intentions.
"In the past, Sony has been guilty of making bold claims and not always delivering, but its vision of modern gaming against a backdrop of increased competition from smartphones and tablets with their cheaper games is exciting.
"Thanks to the machine's shared DNA with current high performance PC components, developers have an exciting new system to create their games.
"The PlayStation 4 can deliver incredible cinematic visuals, if what we saw from announced titles like Killzone: Shadow Fall and Driveclub was real, in-game content.
"Sony's innovations, such as the ability to share gameplay experiences with friends, and the rest of the world - and a planned archive of Sony's considerable back catalogue streamed over the internet - could be game-changing."
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