Technofile: Gamers, hold onto your hats. Sony's new PlayStation 3 looks set to revolutionise the world of gaming, and further blur the boundary between the real and virtual world.

The annual E3 Expo in Los Angeles played host to the launch this week of the PlayStation 3 (PS3), which packs 10 times more power than the average PC and features movie-like graphics.

Sony insists the new PS3 will be the most powerful gaming system to date. The ultra-realistic-looking gaming demonstrations - particularly of a new game called KillZone - appeared to confirm those claims.

Certainly, when you can tell whether a game character is wearing a silk or a cotton shirt, you realise that games will never be viewed in quite the same way again. That film-like experience is ironic - the gaming industry already makes more than the Holywood film industry, and is about to become even more like the movies.

To achieve this effect, Sony says it has "delivered a supercomputer into the living room".

The PS3 is powered by a new chip developed by IBM and Toshiba, called the Cell. It is touted as being as fast or faster than the most powerful personal computers on the market today, running at 3.2GHz.

The new PS3 console will have wireless controllers, a detachable 2.5-inch hard drive, slots for compact flash and Sony's memory stick media and a built-in Wi-Fi connection that can connect to the PlayStation Portable.

There will also be support for up to seven controllers at once, making it a truly group gaming experience. The PS3 also aims to be an entertainment hub for the home by hosting photos, music, videos, and playing high-definition DVDs.

It is also highly connected, enabling an owner to access its data from any internet connection in the world.

Given its computing power, the PlayStation 3 may eventually cost more than the PS2 but, until they go on sale, it's likely we'll be kept guessing.

Sony will want to see how sales of the new Xbox 360 hold up first before committing to a price tag.

Microsoft hoped to get its PR machine cranked up by unveiling the next generation Xbox on MTV last week.

The Xbox 360 will come equipped with a Windows Media Center - the same bundle of applications found in the Windows XP operating system on most PCs.

It will also have an ethernet port to enable high-speed internet connections for the "Xbox Live" online gaming subscription service.

Microsoft has announced an impressive list of games for Xbox 360 and the big game publishers, like Electronic Arts and Ubisoft, seem to be more willing to support Xbox 360.

What kind of games will appear of the PS3 is less clear, but then it's still early days. But importantly it will be compatible with games for earlier generation PlayStations.

At the same event, Nintendo, Sony's other main rival, revealed its latest console, Revolution, scheduled for launch in early 2006. It also unveiled the Game Boy Micro, the new version of the handheld console.

Nintendo reckons it has a secret weapon in a downloadable database of 20 years of games titles, including such favourites as the Super Mario and Donkey Kong series.

The new Xbox will hit the shops fastest, going on sale just before Christmas this year, while Sony is waiting for spring of 2006 for its PS3 launch.

But the show appears to have been stolen so far by the PS3.

And with Sony owning around 70 per cent of the lucrative global gaming market, it is clearly in no rush to relinquish that top spot.