Sony pressured to change game with PS4 console

Sony is expected to reveal its vision of the future of home entertainment on Wednesday by providing a glimpse at a new-generation PlayStation console that streams games, films, music and more.

"Sony needs a big hit with this game console," said Forrester analyst James McQuivey.

"Not just because it has lost its dominance in gaming to Microsoft's Xbox 360, but because the company needs to make what might be its last attempt to be relevant -- not as a device maker but as a digital platform."

McQuivey argued that the Japanese consumer electronics titan must show it can go beyond selling gadgets to skillfully cultivating ongoing relationships with customers who turn to online sources for entertainment.

Sony has remained mum, but that hasn't stopped talk of hardware upgrades such as improved graphics and controllers with touchpads, and chatter of a Sony cable-style service to route film or music content to PlayStation consoles. Speculation ahead of the event included talk of being able to play full-scale videogames streamed online -- a break from the practice of selling titles on disks.

"If Sony can offer streamed top-notch games via an affordable pricing plan, that would be a coup," Steinberg said. "It is a nascent market that will be growing by leaps and bounds in coming years."

Free or inexpensive free games on smartphones and tablet computers are increasing the pressure on videogame companies to deliver experiences worth players' time and money. New generation consoles are typically priced in the $400 to $500 range, and blockbuster game titles hit the market at $60 each.

Industry tracker NPD Group reported that just shy of $9 billion was spent in the United States last year on purchasing or renting video and computer games.

Another $5.92 billion was spent on game downloads, subscriptions, and play on mobile games or at social networks, according to NPD.