Japanese games giant Nintendo has confirmed that the price of its new Wii console will be much lower than its rivals.

Yoshihiro Mori, Nintendo's senior managing director, told a news conference in Osaka today that the new machine would not cost more than ?25,000 ($250).

The price range set by Nintendo contrasts with the cost of Sony's new PlayStation 3, which is due to hit the shops in November.

A basic version of the console will cost $499, while a premium model will sell for $599.

Prices for Microsoft's Xbox 360, which went on sale last November, start at $299. A basic version of the console will cost $499, while a premium model will sell for $599.

Nintendo, which expects to ship 6 million Wii consoles this year, is banking on the gadgets being a hit to boost its flagging performance.