Sony began a new round of console wars on Tuesday when it unveiled a cut-price version of its PlayStation3 games console, in an effort to stimulate sales.

Speaking at the Gamescom trade show in Cologne, Germany, the Japanese consumer electronics company introduced the PS3 Slim, which will sell for €299 ($421), €100 less than current models. Sony is hoping this will help it make up ground against Nintendo, whose Wii console has dominated the market, and stimulate the games sector that is suffering in the downturn.