The new model will go for $349.99. Apart from a bigger hard drive, it's identical to the 120GB PlayStation 3 that sells for $299.99.

Rival Microsoft will release a 250GB version of its Xbox 360 hardware this fall via a limited edition $399.99 bundle that packs a copy of Modern Warfare 2 and an extra controller, though it has no plans to release the larger hard drive separately.

Both PlayStation 3 and Xbox 360 allow owners to replace or upgrade their hard drives, though Microsoft is the only official provider of Xbox 360 hard drives. The PlayStation 3, meanwhile, is compatible with most 2.5-inch SATA hard disk drives.