Sony is dropping the price of its PlayStation 2 (PS2) in the US in an attempt to boost sales before the company launches the PlayStation 3 (PS3) in November.

A PS2 will now cost $129.99 in the US, a reduction of $20 on the previous price.

Sony, the world's second-largest consumer electronics maker, expects the price move to fuel consumer demand.

The PS2 is the world's leading game console, having sold over 101 million units globally since its launch in March 2000.

In the US, the console has a market share of over 55 per cent, according to research firm NPD Group.

"While we continue to innovate and design groundbreaking new products, we remain dedicated to our long-term vision for the PlayStation 2 platform," said Kaz Hirai, president and chief executive, Sony Computer Entertainment America.

"Now even more consumers, as well as casual gamers, can experience what the PlayStation 2 platform has to offer - an unrivaled combination of the largest selection of software, a growing community for online gaming and one-of-a-kind accessories such as EyeToy - at a new value price."

The price cut comes a month after the company announced that it was postponing the launch of the PS3 until November.

Technical hitches related to the machines Blu-ray high-definition DVD player have forced the delay.

The Japanese-based company had originally planned to release its new console in the spring.

Sony has dominated the games console market for many years but in recent times has faced fierce competition from both Microsoft and Nintendo.

The PS3 will compete with Microsoft's Xbox 360, which went on sale last December in Europe, and Nintendo's Revolution, which is due for release in the fourth quarter of this year.

The Xbox 360 comes in two packages in the US. A premium version sells for $399 and a core version is priced at $299.

The Revolution will cost under $300 in the US, Nintendo officials announced last month.