The new version will also have a bigger hard drive and increase the capacity to 80 gigabytes for storing downloaded content such as video games and high-definition movies.

However, the larger capacity Playstation will not be available in US and Canada until August. Sony spokesman David Karraker said that the move is in sync with the company‘s upcoming strategy of eventually offering downloaded high-definition movies, video games, movie trailers and demos.

The announcement comes two days before the E3 Media and Business Summit in Santa Monica, California, where Sony rivals Microsoft Corp. and Nintendo Co. are expected to put their latest games and related products on display.

Karraker said Sony would use the event to focus on ways to increase the number of consumers who own PS3s and other products such as the PlayStation Portable handheld system. It would also look at expanding the system‘s library of available games.

He said that Sony would be releasing about 100 new video games during the current fiscal year, including 15 titles that are exclusive to PS3 such as the hack-and-slash action title "Heavenly Sword."

In April, Microsoft began selling a version Xbox 360 Elite, with a 120-gigabyte hard drive priced at $479.99. It currently has no plans to slash rates of Xbox 360 in Japan where it trails far behind rival machines at Nintendo Co Ltd.