Sony is to sell an upgraded version of the PlayStation 3 that sports an expanded 80-gigabyte hard disk drive, as it seeks to broaden the games console’s appeal to the download generation.

The machine, fitted with more data storage space and aimed at consumers who download games and video content over the internet, will go on sale in South Korea on June 16 for 518,000 won (£280). The country leads the world in terms of high-speed internet access and teenagers there are regarded as perhaps the most tech-savvy on the planet.

At present, Sony offers 20GB and 60GB versions of the PS3 in Japan. It sells only the 60GB model in Europe - for about £425 in the UK. It is set to stop shipping the 20GB version in the US, to focus on the 60GB model.

The shift in strategy comes as Sony finds itself locked in a fierce war in the £15 billion-a-year global games console market, against both Nintendo’s rival Wii machine and Microsoft’s Xbox. The Wii, aimed at casual gamers, is estimated to be selling at twice the rate of the PS3, which is aimed at “hard-core” games fans.

Earlier this month, Sony's games division posted an operating loss of 232 billion yen (£962 million) for last year, after the PS3 was hit by lengthy delays and cost overruns. Ahead of the release of those earnings, Ken Kutaragi, "father of the PlayStation", was effectively retired from the company by Sir Howard Stringer, the chief executive, after the PS3’s fraught launch.

By contrast, Nintendo posted a 77 per cent surge in full-year profits, at Y174.29 billion. Revenues were up 90 per cent to Y966.53 billion, boosted by sales of nearly six million Wii units in the five months since its launch.

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