Microsoft has gained ground on Sony, the current market leader, with the Xbox 360, selling over three million units since November 2005. Indeed Microsoft could end up with head-start of around 10 million units before Sony’s console comes to market.

Sony executives at the Electronic Entertainment Expo (E3) game convention unveiled a new wireless movement-sensitive controller that sets it apart from the Xbox 360 and the Wii free-hand controller from Nintendo. Sony’s CEO Kaz Hirai also highlighted the PS3’s allegedly superior computing power, with a microprocessor dubbed the Cell jointly developed by Sony and IBM.

The PS3 will also provide access to online services, with additional content, voice messaging, and a marketplace featuring Sony music available for download. Unlike Microsoft’s Xbox 360, which offers a similar online service, the PS3 version will be free.

Sony has sold over 101 million PlayStation 2 units, compared with 24 million Microsoft Xbox units and 21 million Nintendo GameCube units.