Sony Corp will launch a cheaper version of its PlayStation 3 game console and has announced it would cut prices for the current model effective August 19 in Europe and the United States.

The new slim version of the PS3 will be launched in the first week of September, priced at 299 euros in Europe and $299 in the United States, Sony Computer Entertainment Chief Executive Kazuo Hirai said at the Gamescom video game trade show in Cologne, Germany.

Analysts had expected such a move, aimed to spur sales of the company's system, which has lagged behind rival game machines by Microsoft and Nintendo.