Users will pay a high price for Sony's next-gen console

Sony's European vice president has admitted that the company's next-generation PlayStation 3 console will cost between €500 and €600 (£350 and £420), according to reports of a radio interview he gave in France.

George Fornay told Europe 1 radio that the PlayStation 3 would be launched in France in November, revealing what should be the release date for the whole of Europe.

The £350-plus price tag will compare very unfavourably with Microsoft's Xbox 360, which costs £205 for the core system and £280 for the premium pack.

The considerable price difference may open up even further, however, as Microsoft will inevitably drop the Xbox 360 price as Sony approaches its PlayStation 3 launch.

The only previous pricing statement for the PlayStation 3 was made by Ken Kutaragi, head of Sony Computer Entertainment, who admitted that it would be " expensive".