Japanese electronics giant Sony has announced plans for an online gaming service for its forthcoming PlayStation 3 (PS3).

The introduction of the service will coincide with the November launch of the next-generation PS3, Sony said.

The service, known as PlayStation Network Platform, will allow users to compete against each other online, use e-mail and interact with other gamers.

A basic version of the service will be free but users will also be able to purchase and download add-on content for games such as new levels, characters and weapons.

Phil Harrison, president of worldwide studios for Sony Computer Entertainment, made the announcement at the Game Developers Conference in San Jose, US, on Wednesday.

The news comes a week after the company announced that it was postponing the launch of the PS3 until November.

The firm had originally planned to release its new console in the spring.

Technical problems related to the machines Blu-ray high-definition DVD player had forced the eight-month delay, Sony said.

Sony, the world's second-largest consumer electronics maker, has dominated the games console market for many years with the success of its PlayStation 1 (PS1) and PlayStation 2 (PS2).

The company has sold more than 90 million PS2s and over 100 million PS1s.

But Sony is now facing fierce competition from both Microsoft and Nintendo.

Microsoft, which launched its Xbox 360 console in the US last November, already offers an Xbox Live online gaming service.

On Tuesday, Microsoft announced that 85 per cent of Xbox 360s connected to the internet have downloaded content from Xbox Live.

Nintendo's Revolution, which will be unveiled in May, is expected to launch worldwide in the fourth quarter of this year.

Sony will be hoping that a future online service will tempt gamers into buying a PS3 rather than a rival console.

However, Microsoft will be looking to use the next eight months to cement its position in the video console market.

The company has already responded to the PS3 delay by announcing plans to increase production of the Xbox 360.