The upcoming sequel was unveiled during the PS4 event in New York by Sucker Punch.
The announcement was accompanied by a video which explores the game's themes of government control and privacy.
Little else is known about the title, though a character was seen unleashing a powerful fireball, which was caught on camera.
Officially confirmed at the start of the event, the PS4 has been compared to a "supercharged PC". The PS4 features an x86 CPU, enhanced PC GPU and 8GB RAM.
The Dualshock 4 controller, which was leaked before the event, appears similar in design to the standard PS3 controller, except for a touch pad, share button, and light bar that acts like a PlayStation Move.
Using Gaikai cloud technology, users will be able to play PS4 games remotely using Vita, similar to using the Wii U GamePad.
New first-party games include Killzone Shadow Fall, and DriveClub.
Square Enix announced a new Final Fantasy, which will be unveiled at E3, Ubisoft confirmed Watch Dogs for launch, Capcom teased a new game called Deep Down and Braid creator Jonathan Blow announced The Witness.
Blizzard, meanwhile, announced Diablo 3 for the PS3 and PS4, while Bungie revealed that the PS4 version of Destiny will feature exclusive content.
> Read our on-going coverage on PlayStation 4
> PS4 reveal video stream, live blog
PS4 - Sony reveals new PlayStation accessories, DualShock controller - photo gallery: