Tech Transformers

Sony has FINALLY named its VR headset

Sony has slashed the price of its PlayStation 4 games console by over 12 percent in its Japanese home market—and finally given a name to its virtual reality gaming headset.

The headset will be called "PlayStation VR" and will be available in the next few months. It was unveiled in 2014 and was previously referred to as "Project Morpheus."

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"The name 'PlayStation VR' not only directly expresses an entirely new experience from PlayStation that allows players to feel as if they are physically inside the virtual world of a game, but it also reflects our hopes that we want our users to feel a sense of familiarity as they enjoy this amazing experience," Masayasu Ito, division president of PlayStation Product Business, said in a statement.

Sony said the PlayStation VR would be available in the "coming months" but gave no details on pricing. The headset is competing against the likes of Facebook-owned Oculus Rift and the HTC Vive.

PS4 price cut for holiday season

In addition, the electronics giant said in a statement on Tuesday that the PS4 would now retail at 34,980 yen ($290) in Japan, down from 39,980 yen ($331).

The PS4 price slash comes as traditional console gaming faces stiff competition from mobile games in Japan. Console software revenues in Japan are seen at $4.4 billion this year, below mobile gaming revenues at $6.2 billion, according to market research firm Newzoo.

Sony's PS4 is the leading console on the market and had sold 20.2 million units as of March 1, following its release in November 2013. Analysts at Daiwa Securities predict that Japan sales have reached roughly 1.5 million units, below 10 percent of the total.

The PlayStation is a key part of Sony CEO Kazuo Hirai's turnaround strategy as it is one of the company's most profitable businesses, amid a decline in the smartphone unit.

Sony is not the only games company having a tough time in Japan. Nintendo has struggled over the last couple of years, but is now making a strong push into mobile gaming. But Sony said the PS4 price cut was not due to the challenging environment in Japan but down to the fact that it had enhanced its lineup of games in time for the the holiday season and wants to get people using the PlayStation 3 model to upgrade.

"In hopes to deliver the PS4 experience to those old PlayStation fans who don't own PS4 as well as to those new to PlayStation, and in conjunction with this positive momentum, we have decided to set a new price point in Japan, further accelerating the install base of the PS4 in the region," Sony said in a statement to CNBC. The Japanese company did not say whether it would cut the price of the console in other markets.