Sony(SNE) - Get Report  silenced virtual rumors Friday when it confirmed plans for an ultra-high definition version of the PlayStation 4 gaming console nicknamed "Neo."

Conflicting reports of whether Neo would be introduced at the annual Electronic Entertainment Expo in L.A. next week have been circulating recently.

Andrew House, president and global CEO of Sony Interactive Entertainment, told the Financial Times on Friday that his company "is developing an upgraded version of its PlayStation 4 gaming console that will offer ultra-high definition 4K resolution and richer graphics."

But House added that no additional details, including pricing and availability, will be discussed during Sony's presentation Monday evening at the widely anticipated conference.

He did tell the Financial Times that the high-end product will be more expensive than the current PS4, which sells for $350. 

The new console is expected to be for advanced gamers interested in 4K content with high resolutions and larger frame rates, but existing PS4 users (about 40 million people) reportedly won't have to invest in new products. By October, every PS4 game will be required to support both systems. 

"All games will support the standard PS4 and we anticipate all or a very large majority of games will also support the high-end PS4," House told the Financial Times. "It is intended to sit alongside and complement the standard PS4." 

While there's no talk of when Neo will hit retailers' shelves, this new development could hamper sales of the standard PS4, giving competitors like Microsoft  (MSFT) - Get Report  an edge. That company is said to be introducing something new at E3 -- reports range from new Xbox consoles to streaming micro-consoles.

Jeffries analyst Atul Goyal said in a research note Friday morning that Sony's dominance will probably not be threatened.

"What could competition (Microsoft) do that would take away Sony's momentum? Well, the video game cycle is a loop from which it's difficult to escape," Goyal wrote.

"If a platform is doing well, it attracts more developers, who develop more games creating a richer game library. And that in turn drives more demand for the platform and the loop goes on. ... Today, there are more than (40 million) PS4 users, as compared to (20 million) XBOne users. There isn't much that Microsoft could do."

Sony shares closed Friday at $28.03, a decline of 2.6%. Microsoft finished the day at $51.48, a drop of .3%.

In addition to advances in 4K with Neo, Sony plans to release its own virtual-reality headset in October. Next week at E3 the company will hold demos of some of its VR products and plans. Goyal said that if they are successful, this could set Sony apart at the expo -- and in the market.

"While Sony can show some VR games on the stage, the real deal is going to be demos on the floor," he wrote. "If (the) demos are convincing, then Sony stock could start a steady rise toward the October VR launch."

While a price has not yet been released for Sony's new Neo, gaming blogs have been suggesting about $400.