Sony's next generation console, the PlayStation 3 (PS3), will cost $499 when it goes on sale in the US on November 17.

The Japanese-based firm made the announcement at a pre-E3 news conference in Los Angeles on Tuesday.

A more expensive version costing $599 will also be available in the US, Sony said.

The cheaper PS3 will come with a 20Gb hard drive, 256Mb of RAM memory, Bluetooth and a Blu-ray high definition DVD player, while the $599 model will offer gamers a 60Gb hard drive.

"PlayStation 3 is not an incremental upgrade from our previous platforms," said Kaz Hirai, head of Sony game unit in the US.

"PlayStation 3 is a very powerful machine," he added.

The controller for the new console will look similar to the current model for the PS2 but will also include a motion sensor.

"The controller for PS3 employs breakthrough technology of high-precision, highly sensitive six-axis sensing system that does not require any devices other than the controller itself for seamless interactive operation, thus eliminating additional settings to TVs," Sony said in a statement.

Kaz Hirai,Sony Games: "PlayStation 3 is not an incremental upgrade from our previous platforms. PlayStation 3 is a very powerful machine."

"With this technology, ways to enjoy PS3 will be further enhanced by accessing PS3 through the network, while retaining the six-axis sensing capability."

The PS3 will compete with Microsoft's Xbox 360, which went on sale last November in the US, and Nintendo's Revolution, which is due for release later this year.

Sony 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 worldwide.

Sony had originally planned to launch the PS3 in the spring but technical problems related to the machines Blu-ray high-definition DVD player forced the firm to delay the launch until November.

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

Microsoft said it expects to sell 10 million units of the Xbox 360 worldwide within fourteen months of the launch.

Sony, the world's second-largest consumer electronics maker, expects to have sold around 6 million PS3s by the end of next March.

The PS3, which is compatible with both standard-definition and high-definition TV sets, will be released in Japan on November 11 and in Europe and Australasia on November 17.

Sony said the console will be able to play existing PS2 and PS1 games.