The company executive told Eurogamer that a lack of consumer interest in the technology has seen the firm shift its focus towards developing new properties.
"Consumers decide how relevant it is. It's fair to say consumers have decided it's not hugely important at this time," Gara said.
"It's a capability we've got. It may have a bigger life a little further down the line. It's great we can do it. It doesn't seem to be the most powerful USP at the moment, so you've seen us shift our effort onto fresh new exciting IP.
"I'm certainly really pleased to see the strength of that as we look into next year. We've seen a resurgence really with the strength of the output from the studio network."
Gera also confirmed that the PlayStation Vita will be given a price reduction at some point in 2013.
Watch Digital Spy go hands on with Sony's forthcoming super slim PS3 below: