The new console will appear in Japan at the end of July, and not only will it have a bigger hard-drivebut will also be available in white, just like a Beatles album.
The 160GB model will be sold for $401 which is the same price as the 120GB. A 320GB model is also being planned.
The move comes as there is increased competition between Sony and Microsoft for the hearts and minds of gamers. For ages the two have been the also rans behind the much lower tech Nintendo Wii. This was mostly because the Wii had a motion controller which allowed people to play games without using buttons.
Microsoft and Sony will release motion-sensing controllers later this year. PlaySsation Move wands will hit the market in time for the year-end holiday shopping season in the US. Microsoft’s Kinet technology will use a 3D camera and gesture recognition software.