COLOGNE, Germany (Reuters) - Sony Corp will launch a slimmer, cheaper version of its PlayStation 3 game console next month, hoping to jumpstart sales and win back market share from rivals Microsoft and Nintendo.

Starting in September, the latest, less bulky version of the PS3 will be rolled out at $299 in the United States, 299 euros ($422.7) in Europe and 29,980 yen ($315.6) in Japan, the company said on Tuesday.

That represents a major price cut from the existing PS3 models, which runs between $399 to $499 and have proven less popular than Microsoft's Xbox 360 and Nintendo's Wii.

"The main thing is that there is a significant price cut," said Ed Barton, analyst at Screen Digest. "We have argued since the beginning that there must be a substantial cut and this is a positive development."

Sony's new PS3 comes with a 120 gigabyte hard disk, but consumes 34 percent less power than the original model and is 32 percent smaller, Sony Computer Entertainment Chief Executive Kazuo Hirai said at the Gamescom video game trade show in Cologne, Germany.

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The new, slimmer and lighter PSP

LOS ANGELES (Reuters) - Sony Corp unveiled on Tuesday a smaller, lighter PlayStation handled game device called the PSP Go, in a race to catch rival Nintendo in an intensely competitive mobile games arena.

Hours before, Nintendo said it sold more than 15 million units of its blockbuster "Wii Fit" fitness game, and plans an update -- the Wii Fit Plus -- later this year.

Sales of the Wii have dwarfed those of more technically souped-up and pricier rival consoles from Microsoft Corp and Sony Corp, by broadening its audience beyond hard-core video gamers.

On the second day of E3, the largest U.S. video games conference, Sony and Nintendo vied for the spotlight, a day after rival console-maker Microsoft charmed audiences with its "Natal": groundbreaking technology utilizing full-body motion-capture for gamers.

It was the first full day of the show, which is expected to draw some 40,000 game enthusiasts.

Many cheered and whooped at the press event at mere glimpses of new versions of popular games like "God of War" and "Super Mario Bros.," or at the mention of secretive ones like "Agent," which is being developed for the PS3 by the creators of "Grand Theft Auto."

Sony's PSP Go goes on sale October 1 in North America and Europe for about $249, before hitting stores in Japan November 1. It will be half the size of Sony's current PSP 3000 and 40 percent lighter, executives said.

Source:Reuters