Sony PS3 to Be Most Expensive Console

Sony Computer Entertainment’s PlayStation 3 will be the most expensive game system on the market when it debuts Nov. 17 in North America.

The much-anticipated video game console will sell for $499 for a system that has a 20-gigabyte hard drive or $599 for a system with three times the storage, the company said at a news conference Monday night. Microsoft Corp.’s Xbox 360 starts at $299.

Sony also unveiled the PS3’s motion-sensing game controller that allows the player to move on-screen characters up, down and side-to-side without striking a single button.

This surprise announcement steals the thunder from Nintendo Co.’s motion-sensing one-handed controller that is the highlight of its new game console, the Wii (pronounced wee).

Kazuo Hirai, president and chief executive of Sony Computer Entertainment America Inc., described the PS3 as ushering in a new era of digital entertainment in the home. Its built-in Blu-ray drive will allow consumers to watch the latest high-definition movies at home.

“By adopting Blu-ray and embracing a forward-reaching medium, we’re sending a message to the content-creation community that the only limitation is their imagination,” Hirai said.

Sony devoted much of its two-hour news conference on the historic Sony Pictures movie lot in Culver City to demonstrating games that take advantage of the PS3’s increased computational firepower and its ability to project high-definition images at maximum resolution.

Analyst Richard Doherty of Envisioneering Group said the realism of the racing games such as Grand Turismo HD, was striking, with the on-screen images resembling a live broadcast.

“Hollywood has a new challenge,” Doherty said. “The realism demonstrated is really a new target for Hollywood to eclipse.”

Although the 60-gigabyte PS3 cost more than analysts expected, it probably won’t hurt sales during the holiday season when quantities will be limited. Sony said it expected to ship 2 million units for its worldwide launch in November and 4 million by the end of the year.

“I think they’re giving gamers enough lead time to save up their money,” said P.J. McNealy, an analyst for American Technology Research.