Sony has chopped 20 percent off the Japanese price of the upcoming Playstation 3 and added a HDMI connection to the basic model, in a bid to tempt buyers away from Nintendo's cheaper Wii console.

Sony will cut the price of its basic PlayStation 3 model in Japan to 47,600 yen ($410), from an originally planned 59,800 yen ($515). That puts the PlayStation 3 in the same range as the combined basic Xbox 360 and HD DVD player in Japan, where the duo will sell for 49,600 yen ($427).

The decision to cut the price in Japan only and add the HDMI 1.3 port had taken many analysts by surprise. Some say this is a humiliating move on the part of Sony, following it's poor showings at recent gaming events and public perception of price for the product.

Ken Kutaragi, head of Sony's game unit, said: "What is important is that we get more consoles sold to make up for the price cut, and get more game makers and chip makers in our camp."

The PlayStation 3 launch, initially planned for earlier this year, has been postponed twice. Sony now expects to ship only 2 million units by year's end instead of 4 million as originally planned.

Earlier this month, Tokyo-based Sony said it would delay the European release by four months until March.

Nintendo said last week its new Wii game console will arrive on schedule in the final quarter of the year, priced below both rivals, the Xbox 360 and the PlayStation 3.