Sony launch slmmer Playstation

Sony is introducing a smaller, slimmer and lighter version of its PlayStation 3 console ahead of the year-end holidays as it gears up for growing competition in games from smartphones.

The announcement from the Japanese electronics and entertainment company comes a day ahead of the annual Tokyo Game Show, where game makers show their wares.

The timing also coincides with Friday’s launch of the iPhone 5 smartphone, which is drawing long queues at some retailers.

The new PlayStation 3, closer to the size of a laptop, is half the size of the original model, introduced in 2006. It also offers more hard-drive memory at 500GB and 250GB, up from the current 320GB and 160GB options.

The global rollout starts on September 25 in North America, where the 250GB version will sell for $269 (€205). The other version will sell for $299 US dollars (€229) from October 30.

In Japan, the models go on sale on October 4 for 29,980 yen (€291) and 24,980 yen (€242).

Tokyo-based Sony is struggling as its other electronics businesses get battered by competition from Apple iPhone models as well as by cheaper Asian rivals.

The maker of Bravia TVs and Walkman portable music players posted its worst loss in its 66-year history for the fiscal year ending in March – its fourth straight year of red ink.

Sony is banking on games to help steer a turnaround. Company president Kazuo Hirai has shaped much of his career by leading the game division.

To woo consumers, Sony is slashing the price on its PlayStation Portable, or PSP, mobile device as it increasingly moves on to focus on its upgraded PlayStation Vita, which went on sale last year.

Sony plans to expand entertainment based on cloud computing, which offers storage and other computer services over the network, after recently acquiring Gaikai, a US game company.

The PlayStation Vita will not be getting any upgrades yet, but it will be available in new colours – blue and red – in addition to white and black, but only in Japan.

Speculation is buzzing about a PlayStation 4, possibly before the end of next year, but officials have not confirmed it.

The PS Vita, which has a touch-panel, allows users to live-stream video and works as an electronic book function for colourful comics, according to Sony.

But Sony has already slashed its PS Vita sales target for this fiscal year through to March 2013, to 12 million units, down from 16 million given three months earlier.

In lowering the target, Sony pointed to the economic slowdown, especially in Europe. But it also noted the intense competition from smartphones and social networking entertainment.