The PS4’s 500GB fills up too fast these days.

JUNE 2, 2015 • According to certification documents that were submitted to the U.S. Federal Communications Comm. (F.C.C.) by Sony Computer Ent., two new PlayStation 4 models are planned, one of which is equipped with a 1TB storage device (CUH-1215B), while the other unit (CUH-1215A) is retaining the current 500GB capacity. Other changes in these units are minor, however, with the new models weighing in slightly lighter suggesting electronic components that have been improved upon since 2013. Similarly, the power supply has a reduced output of 230 watts compared to the original 250 watts, again suggesting components that have been refined to require less power. The F.C.C. requires that electronic devices that broadcast and receive signals to be tested and the results submitted for certification. In the case of the 1 TB PlayStation 4, certification for Bluetooth and WiFi transmission testing from Sony was required.

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Impact: Sony has not made any official announcements regarding a 1TB PlayStation 4. Yet seeking certification of a 1TB model clearly indicates it is coming and indeed more storage space is a necessity considering where the console business is going.  DFC Intelligence recently published its Q1 report on the North America Digital Console Market. This report tracks the growth of digital products on console broken out by titles priced at over $30, titles priced at under $30 and downloadable content, subscriptions and microtransactions.  For the new console systems, DFC Intelligence is forecasting that these sources of digital revenue will pass retail revenue by 2019.  A major problem is that 500 GB is actually small when it comes to doing heavy duty digital delivery.  Many consumers are complaining that they lack sufficient storage space to hold as many digitally downloaded titles that they intend to purchase. Today 500GB will hold 10 to 20 games, but the size of game installations continues to rise, especially when frequent new DLC is made available. Therefore, a 1TB option for current generation consoles is an inevitability. If this were our play, we would introduce a 1TB PlayStation 4 at the current $399 MSRP and reduce the 500GB PS4 option to $349. Those are two strong marketing pitches to draw consumer interest in the months ahead and we would be surprised if Sony does not follow this strategy at E3.