LOS ANGELES - SONY on Tuesday added online movie sales and rentals to the repertoire of PlayStation 3 videogame console features.

And while remaining true to a vow to hold firm on prices of PS3 consoles, the Japanese electronics goliath said it will introduce a new model with 80 gigabytes of hard drive memory to replace its 40-gigabyte version.

The beefier memory model will have its leaner predecessor's price tag: US$399 (S$537.80).

Sony's movie and television sales and rental service went live Tuesday at the PlayStation Network which is accessible through the PS3.

The roster of show providers includes Fox, MGM, Disney, Paramount and Sony Pictures.

Television shows can be viewed for US$1.99 per episode and film rental prices range from US$2.99 to US$5.99, Sony executives said during a press conference at the Electronic Entertainment Expo in Los Angeles.

PlayStation 3 users can buy movies for download at prices from US$9.99 to US$14.99.

In a unique twist, downloaded video can be transferred to Sony's handheld PSP game devices for viewing on the go.

A day earlier, Sony rival Microsoft announced an alliance with Netflix in which the popular US online video rental service's members will be able to stream films for viewing using Xbox 360 videogame consoles.

Netflix lets members download films for viewing on computers and maintain online queues of DVDs that are mailed to homes.

Xbox Live service users will be able to route Netflix film downloads to Xbox 360 consoles to watch on television.

People with Xbox Live and Netflix accounts will also be able to share downloaded videos via the Internet to 'watch them together despite sitting on different couches,' said Xbox Live vice president Mr John Schappert.

Microsoft announced on Sunday it is cutting US$50 from the price of 20-gigabyte Xbox 360 models in the United States and Canada to clear the way for a version of the console with 60 gigabytes of hard drive memory. -- AFP