Finally, Sony unveiled its first video game console in seven years in New York on Wednesday (February 20). The Playstation 4 will let users stream and play video games hosted on servers, as well as having a more streamlined approach to console architecture.

"The stakes are high for what we're going to show you," Sony Computer Entertainment President Andy House told an expectant audience.

"Today marks a moment of truth and a bold step forward for Playstation as a company, as creators and innovators, and as industry leaders."

Sony said the console would be available for the holiday 2013 season. It did not immediately disclose pricing, nor did it show off the actual console itself, but highlighted the specs of the console as well as the content and social experience that the Playstation 4 would provide consumers.

The Playstation 4 will come packed with 8GB RAM as well as a powerful chipset provided by AMD, this PC approach to design will help developers when creating new games for the console.

The new console will also offer a cloud-gaming service, using U.S. cloud-based gaming company Gaikai that Sony purchased for $380 million in July last year.

The PlayStation 4, which has been in development for the last five years, can also instantly stream game content from the console to Sony's handheld PlayStation Vita through a feature called "Remote Play."

Sony has also revamped the user interface on the new console that keeps tabs on user preferences and added social networking features.

Sony's announcement comes amid industry speculation that Microsoft is set to unveil the successor to its Xbox 360 later this summer.

Gaining a lead over the Xbox and Nintendo's new Wii U could help Sony revive an electronics business hurt by a dearth of hit gadgets, a collapse in TV sales and the convergence of consumer interest around tablets and smartphones built by rivals Apple and Samsung.

Tablets and smartphones already account for around 10 percent of the $80 billion gaming market. Those mobile devices, analysts predict, will within a few years be as powerful as the current slew of game-only consoles.

Written and presented by Adam Justice