Sept. 26 (Bloomberg) -- Sony Corp. will use five times the number of U.S. demonstration booths to promote the PlayStation 3 as it did for the last console, part of a plan to keep users from defecting to Microsoft Corp.'s Xbox and Nintendo Co.'s Wii.

Sony, the world's largest maker of video-game consoles, will spend $30 million to put the consoles in 15,000 U.S. and Canadian kiosks during the holiday season, said Jack Tretton, co-chief operating officer of Sony Computer Entertainment America. The 2000 introduction of PlayStation 2, which dominated the last generation of game consoles, used 3,000 demo booths.

``Once the consumers get their hands on a PS3 and understand what's under the hood, I think price will not be a factor in the decision-making process,'' Tretton said in an interview.

Microsoft and Kyoto, Japan-based Nintendo combined will sell four times as many consoles as Sony by year-end, partly because of the new PlayStation's $500 starting price and limited supplies, estimates analyst Evan Wilson of Pacific Crest Securities in Portland, Oregon. Executives at Tokyo-based Sony will use the booths to convince gamers to wait.

The PlayStation 3's Cell processor, 40 times more powerful than the predecessor, allows game developers to give characters the ability to ``learn'' from experience and change their response to gamers' strategies, Tretton said.

High-Definition

The PlayStation 3 also contains a Blu-ray high-definition DVD player, giving the console the ability to double as a home- entertainment center, Tretton said.

U.S. depositary receipts of Sony rose 23 cents to $41.06 at 4 p.m. in New York Stock Exchange composite trading and are little changed this year. One depositary receipt is equivalent to one ordinary Sony share.

Nintendo shares rose 840 yen to 23,400 on the Tokyo Stock Exchange. They have gained 64 percent this year. Shares of Microsoft rose 25 cents to $27.20 in Nasdaq Stock Market composite trading. They have gained 4 percent this year.

PlayStation 3 isn't expected to dominate sales the way the earlier model. Sony's share of the $20 billion game-console market may drop to 40 percent from 60 percent over the next five years, Wedbush Morgan Securities analyst Michael Pachter said. PlayStation 3 will sell for as much as $600 in the U.S., compared with $300 and $400 for Xbox models and $250 for Wii.

``Consumers aren't sure whether or not they need this amount of technology,'' Wilson said. ``But they're sure $600 seems like a lot of money for a game console.''

Worldwide Forecast

Evans predicts worldwide holiday sales of 4 million units each for Wii and Xbox 360. Sony plans to ship 2 million new consoles in the U.S. and Japan, starting on Nov. 17 in the U.S. In Japan, Sony last week dropped the price of PlayStation 3 models to $430 in response to consumer complaints. Sony has no plans to drop the price in the U.S., Tretton said.

Sony on Sept. 6 delayed the introduction in Europe to March from November because of a shortage of parts for the Blu-ray player.

About half the televisions sold in 2007 will be high- definition sets, a trend that will make the PlayStation 3's high-definition capabilities more attractive, Tretton said.

Redmond, Washington-based Microsoft, the world's largest software maker, said on Sept. 20 that it will sell a high- definition DVD player based on Toshiba Corp.'s rival HD DVD technology for use with the Xbox 360.

Action-Packed

Nintendo, meanwhile, is trying to get children off the couch. The Wii (pronounced ``we'') will offer simpler games, such as tennis and baseball, played with a motion-sensor wireless controller that players can brandish like a sword or swing like a racket, with the movements replicated onscreen. The company's strategy is to appeal to parents who want their children to get more physical activity.

``You don't have to have a consultant to play it,'' said Mike Hickey, an analyst with Janco Partners in Greenwood Village, Colorado. ``The new control system is very innovative and easy to use.''

The real test of PlayStation 3's popularity will come after the holiday season, when the company has worked out the kinks in its production schedule, Tretton said.

``These are the first few steps in a very long marathon,'' he said.

To contact the reporters on this story: Michael White in Los Angeles at mwhite8@bloomberg.net;

Last Updated: September 26, 2006 16:41 EDT