LOS ANGELES, USA: Sony Corp said on Tuesday that it plans to launch a PlayStation 3 game console in September with an 80-gigabyte hard drive for $399, the same price as the PS3 with a 40-gigabyte hard drive.

Sony plans to phase out the smaller hard-drive PS3 machine and make the 80-GB version its mainstay as it focuses on making the console a home entertainment hub capable of storing downloaded movies and games.

At a news conference at the E3 video game industry trade show, the company introduced a video distribution service on its PlayStation online network that allows users to rent or purchase movies or TV shows, taking aim at a stronghold of Microsoft Corp's Xbox Live platform.

It will become available on Tuesday.

The Japanese electronics and entertainment conglomerate said the PlayStation 3 is "well on its way" to reaching its goal to sell 10 million units by the end of March.

Sony Computer Entertainment America President Jack Tretton said it was also on target to meet its goal of selling 15 million units of its handheld PSP in Sony's business year ending March 31, 2009.