Sony has confirmed that it is working on a replacement for the PlayStation 4.

While the company hasn't mentioned it by name, it is widely thought that the next generation console will be the PlayStation 5. It is also suggested that the new machine will not represent a radical departure for the company. Its architecture will be similar, it is said.

Sony's CEO, Kenichiro Yoshida, revealed his firm's plans to the Financial Times, although he didn't elaborate further: "At this point, what I can say is it’s necessary to have a next-generation hardware," he said.

His comments come after Microsoft announced Project xCloud, a cloud-gaming platform that it hopes to open for public trials sometime in 2019. This is on top of an expected Xbox Two console that would rival the PS5.

Cloud gaming is still in its infancy at present, with Sony having its own service in the form of PlayStation Now. However, it has faced criticism due latency issues when playing games over the cloud and has recently added digital downloads to the platform, for subscribers to play offline.

And although PS Now launched for devices other than PlayStation consoles, including Sony Bravia TVs, it killed support in 2017.

It clearly feels that the future of gaming remains with the home console. The PlayStation 5, to be specific.