Sony Computer Entertainment has reportedly began to negotiate with contract manufacturers of electronics in a bid to start production of its next-generation PlayStation 4 video game console late this year with the plan to launch the device in 2012.

Foxconn Electronics and Pegatron Technology, according to a market rumour published by DigiTimes web-site, will start production of the PlayStation 4 game console featuring movement-based control like Kinect at the end of 2011 for launch in 2012. Sony reportedly wants to release at least 20 million PS4 units in 2012.

Sony has already confirmed development of the PlayStation 4 system, but has not announced any details about the system. Usually, designers of game consoles showcase their forthcoming systems at least a year before the launch so that to attract interest towards them both among game developers as well as gamers.

No credible market watchers or market sources expect Sony to release PlayStation 4 in 2012. Moreover, given the fact that Nintendo Wii U is unlikely to offer significantly better games that the PlayStation 3 or Xbox 360 in 2012, neither Sony nor Microsoft strategically need their next-gen consoles on the market in late 2012.

Due to the fact that the launch of PS4 is generally unlikely to happen in 2012, Sony may launch a new version of PS3 next year. For example, the new flavour may sport better integration with Move motion sensor and other components.

Sony did not comment on the story.

Tags: Sony, Playstation