PS Vita TV pictured with DualShock 3 controller. (Photo/Sony)

It’s not the pixel-and-polygon behemoth many gamers will undoubtedly put on their wish list this holiday season, but Sony’s surprise Monday announcement is sure to entice its share of early adopters.

In a bold move, Sony unveiled a $99 set-top box that not only streams multimedia content, but also plays PS Vita games – with future plans to stream PlayStation 4 games as well. Stuck with the perfunctory name of PS Vita TV, the diminutive device measures 6.5 x 10.5 cm and weighs just 110 grams.

Allowing gamers to stream and purchase content from the PSN ecosystem, the device will be able to play about 1,300 games at launch. The set-top box will also come equipped with a PS Vita card slot, memory card slot, USB port, HDMI output and Ethernet connection. Sony announced that the base model will ship with 1GB worth of storage.

Both Wi-Fi and Bluetooth enabled, the PS Vita TV will also allow users to connect a DualShock 3 controller to the unit for game playback. Future updates will allow users to play PlayStation 4 games via its Gakai streaming technology.

Sony plans to launch the device in Japan on November 14th for 9,995 yen (roughly $99), one day before the PlayStation 4 video game console goes on sale in North America.

The announcement sets up a dramatic confrontation with fellow rivals Apple, Google and Microsoft, as the tech titans vie for control of a living room space that has grown increasingly crowded in recent years.

Google has yet to meet demand for its $35 Chromecast device since its launch in July and Apple has maintained a firm grip on its own ecosystem with multiple generations of Apple TV. Microsoft is backing the Xbox One, a $499 video game console that the Redmond-based company is optimistic will solve the living room puzzle.

With Monday’s last-minute reveal, Sony is making a canny decision to hedge its bets. The PS Vita TV experiment will try to expand both Sony’s existing base and attract new customers, without the barrier of entry imposed by the $399 price tag of its upcoming PlayStation 4 console.

If the aggressive move works, it could turn fortunes around for the struggling electronics manufacturer, which has seen its brand strength erode in recent years.

Sony has remained mum on plans to introduce the PS Vita TV to North America, but the device was already drawing raves after its reveal on Monday. With a company-defining horse race with Microsoft quickly approaching, the PS Vita TV appearing on the shelves’ of North American retailers seems all but inevitable.

Reach reporter Will Federman here or tweet him at @wfederman.