PlayStation 3 and Xbox 360 are both in the longest console cycle we've ever seen, and while there are rumors that Microsoft will announce an Xbox 720 at next year's E3 (which Crytek has since denied), IndustryGamers has now heard from industry sources (at a top developer) who wished not to be quoted that Sony is looking to unveil a PlayStation 4 sometime next year as well.

If Microsoft does announce a new system, we could certainly see Sony feeling the pressure not to be a year behind its rival again, as it was with Xbox 360. As for Nintendo, the pending release of Wii U could also be a factor as the competition observes how well the tablet controller idea is received.

"I believe the biggest threat remain themselves and their attempt to elongate this current cycle." -Jesse Divnich on MS, Sony

We spoke to a few analysts to get their thoughts on a possible PS4 unveiling as well as how the console cycle is evolving with new hardware on the horizon.

"I think it's unlikely [that PS4 will be announced in 2012]. Wii U isn't going to pressure anyone, it's Nintendo's catch up to this cycle, and the other guys are going to see if the tablet integration is worth copying first. That means nobody is going to finalize specs till they see if Wii U succeeds. I am sticking to 2014, so an 'unveil' in 2013," said Wedbush Securitites analyst Michael Pachter.

Analyst Colin Sebastian, formerly of Lazard Capital, told us that Sony needs to evaluate the health of its gaming business first, before it can take on another massive investment in a console. "I think Sony introducing Vita at a low price point and likely lowering the PS3 price later this year will ultimately provide a gauge on the overall health of the PlayStation business. I think after that point Sony will be in a better position to speak about any next generation console. For now, I think the focus at Sony should be on ensuring a steady lineup of quality first and third party games for existing platforms," he said.

Indeed, pushing PS3 harder would be more in tune with what investors want to see. Sony recently said it would not expect to spend as much on its next console. David Cole of DFC Intelligence noted, "I would not bet on seeing a PS4 at the next E3. Sony really needs to push out the lifespan of the PS3 and I think Sony's investors would not be happy with a new console system. It would mean a major loss and an early end to the PS3, which if it can last several years longer could start making some decent money for the company. Yes, they will feel pressure from the competition, but I think pressure from investors and the financial community wins the day."

Ultimately, Sony, Microsoft and Nintendo all have to take a long, hard look in the mirror and think about what the future of this business really will be. "The interactive entertainment industry is rapidly evolving and broadening. No longer is the idea of 'video games' limited to a traditional console and a PlayStation-style controller and the inability to play these touch and social games on traditional consoles are hindering factors for all three major players," Jesse Divnich of EEDAR told us.

"Microsoft, Sony, and Nintendo all have a similar goal; they want their consoles to be constantly powered on in the household - from watching movies, television, and of course playing games. But as the mobile, tablet, and social sector grow, it is forcing gamers to go outside of the traditional console experience to interact with these emerging style of games. Of course, I do admit that Microsoft is certainly the forerunner and their recent E3 2011 presentation certainly paints a clear picture that the future of consoles are not 'video game consoles,' but a complete entertainment medium."

At the same time, though, Divnich believes (similar to Ubisoft's Yves Guillemot) that new consoles would help bring about more creativity and new IPs. 

"I don't feel the Wii U is a threat to either Microsoft or Sony's current platforms. I believe the biggest threat remain themselves and their attempt to elongate this current cycle. The data is pretty clear; it is incredibly tough to launch successful new IPs late in a cycle, as there is simply too much consumer muscle memory that hinders our desire to play new IPs. Consumers are more open to trying new IPs and new style of games when the technology itself is relatively new. It is very tough for consumers to break habit," he said.

"Just ask yourself, would Avatar have been as successful if it wasn't in 3D (which at the time was a new way of experiencing movies)? Would Avatar have been successful if it launched 2 years from now? Probably not, on both counts."

Source: http://www.industrygamers.com/news/playstation-4-unveiling-next-year-rumor/