Sony has cut the price of its forthcoming PlayStation 3 (PS3) games console by about 20 per cent in Japan.

The basic 20GB version of the PS3 will now cost 49,980 yen ($430) when it goes on sale in Japan on November 11.

Sony, the world's second-largest consumer electronics maker, had originally planned to sell the 20GB PS3 for 59,800 yen.

The company said it would leave the price of its more expensive 60GB model to retailers.

PlayStation boss Ken Kutaragi made the surprising announcement on the opening day of the Tokyo Game Show.

Sony has lowered the price of its low-end PS3 in an attempt to become more competitive with Microsoft's Xbox 360 and Nintendo's Wii.

The Xbox 360 currently sells for 37,900 yen and the Wii will cost about 25,000 yen when it goes on sale in Japan on December 2.

The price for the US and European launch of the machine will stay the same, Sony confirmed.

Earlier this month, Sony was forced to delay the European release of the PS3 until March 2007.

The firm blamed the four-month delay on problems in mass producing a key component for the machines Blu-ray high-definition DVD player.

Production problems will also mean that fewer machines than anticipated will be available for the Japanese and US launches.

Sony expects to have sold around 6 million PS3s by the end of next March.

Microsoft said it plans to ship 10 million Xbox 360s before the PS3 or the Wii hit the shops.

The Tokyo Game Show will be held on September 22-24 at the Makuhari Messe conference centre in Chiba, Japan.