Consoles Still the 'Ultimate Gaming Experience': Sony Exec

Mobile devices are creating new gaming platforms, but they don't pose a threat to the high-end consoles, the head of Sony's gaming business, Jack Tretton, told CNBC's "Squawk on the Street" on Tuesday.

Tretton said that there's a renaissance in gaming with 1 billion people gaming worldwide. However, "I still think the console is the ultimate gaming experience and it opens the ecosystem with smartphones and tablets," he said, adding that people tend to migrate up the food chain of electronic games to high-end consoles.

"There's never been a better time to be in the gaming business," the executive said.

That should mean new units like the Sony's new PlayStation 4 and Microsoft's Xbox One will continue to have a place in consumers' living rooms.

Despite hefty price tags, gamers are flocking to big budget games. "it's going to come down to the blockbuster games that drive the console," Tretton said.

(Read More: Will the PlayStation 4 Give Sony the Boost It Needs?)

He added that gaming remains the "ultimate technological experience in the living room."

The new PlayStation 4, which Sony revealed will be priced at $399, is aiming to create not only a great entertainment experience, but deliver a multimedia experience as well. The company plans to lean on its entertainment business to bring original content and programming to PlayStation 4, Tretton said.

(Read More: Sony PS4 Beats Microsoft's Xbox One—Pricewise)

Traditionally, the console business is an avenue where companies tend to lose money on the hardware, but yet compensate for it through software sales.

"We've got a really good business model right now where there's going to be a great deal of software and peripherals sold that will generate good margin for us," Tretton said. "But we designed PlayStation 4 so that will be developer friendly, consumer friendly and hopefully something we can monetize as well."