Launch of new Sony PS3 reignites battle of the gaming consoles

London, 19.08.09 . Sony Computer Entertainment has reignited the global battle of the gaming consoles with the launch of a new, cheaper version of its flagship PlayStation 3 (PS3).

Announcing the revised console at the start of the inaugural Gamescom in Cologne, Germany, Kazuo Hirai, the president and group chief executive of Sony Computer Entertainment, said, "In 2004 we launched a slim version of PlayStation 2, a defining moment for that console, helping us to expand the user base of PlayStation further. Today is that day for PlayStation 3."

The new PS3 is slimmer than its predecessor, which was launched in 2006. Mr Hirai claimed it was 36 per cent lighter and 32 per cent smaller than the current model. Like the original PS3, the new console doubles as a Blu-ray player and media centre, with 120GB of hard disk space for storage of photos, music, video or other digital media.

The new machine will go on sale worldwide on September 1, priced at €299 and $299, around $100 less than the current model. The UK price will be £249.99.

Sony hopes the lower price, sleek look and high specifications of the new machine will boost sales of the console, which have been hit by a combination of high price and poor marketing.

Another factor in its lacklustre performance so far is the Microsoft Xbox 360, the only other console capable of high-definition gaming. Not only did the Xbox 360 beat the PS3 to market, but it significantly undercut it on price.

Sales of both next-generation consoles have also been damaged in the past two years by the phenomenal success of the Nintendo Wii, which, although technically inferior to the Xbox 360 and PS3, has outsold both by about 20 million.

In the longer term, however, both high-definition consoles stand to gain from the Wii's success. The Wii has introduced to a section of the population to games-playing that would never previously have owned a console. As these players become more sophisticated and demanding, analysts say, many of them will buy a console that is capable of handling more complex titles.

For the first time since its launch, the Wii has this year experienced flat sales, and has few genuinely compelling titles on its release roster. Sony, by contrast, has an unusually strong line-up for autumn and Christmas. If the PS3 is ever going to be a contender, this is its chance.