The new PlayStation 3 (PS3) will hit Japanese stores on 11 November, with the US and Europe following less than a week later, Sony has announced.

The console will come in two versions. The system with a 20GB hard drive will cost $499 in the US, while a model with a 60GB drive will cost $599. Sony announced the prices on the eve of the E3 games expo in Los Angeles.

The PlayStation 3 is powered by the "Cell" processor, which Sony boasts makes the machine 35 times more powerful than the PlayStation 2. It will support Blu-Ray storage devices, which hold significantly more data than today's DVDs, as well as seven wireless controllers, and has outputs for two high-definition televisions (HDTVs). The PS3 will also offer a free online network.

Japanese gamers will be the first to get their hands on the PS3 on 11 November. The console will arrive in the US and Europe on 17 November.

Sony currently dominates in the home, having sold more than 100 million PlayStation 2s, so it has much riding on the new console. It had originally planned to launch the system in the spring, but was forced to delay due to issues with its new Blu-ray DVD drive.

The two models have very different specs. As well as different hard drives, the cheaper machine will not have in-built wireless or an HDMI (High-Definition Multimedia Interface) connector necessary for hooking the machine up to a High Definition TV or monitor. Howwever, both systems will come with a new controller. Sony has abandoned last year's boomerang-shaped prototype and reverted to a design similar to the current model for the PlayStation 2.

In order to satisfy gamers wanting a PS3 for Christmas, Sony said it planned to have two million units available at launch worldwide, with a further two million by the end of the year.

Sony will also face competition from Nintendo's new machine, expected out later this year.