The console, which went on sale in Japan yesterday, could change the way we watch DVDs, handing Sony control of the industry in the process.

Although primarily marketed as a games console, the new technology is a bold attempt by Sony to crush Microsoft, its main games competitor, and Toshiba, its main rival in the DVD industry.

As new flatscreen televisions increase in resolution, DVD technology is being forced to change. Two new high-definition formats have been developed . . . HD by Toshiba and Blu-Ray by Sony. Since the two are incompatible, it is being billed as the modern equivalent of the VHS. . .Betamax struggle of the 1980s.

While Sony lost the battle 20 years ago, they are now hoping to win the modern war. By incorporating a BluRay player into the Playstation 3, Sony are hoping to gain the upperedge over their rivals.

The console was released amid much fanfare in Japan yesterday, where hardcore 'gamers' had camped outside stores for several days in order to get one of the 100,000 consoles to be released. In order to get around the 'one man, one console' policy employed by shops, it was reported that gamers were hiring homeless people to purchase extra consoles. The machine will not reach Europe until March.