The gaming network will first launch in the UK, followed by Germany, France, Spain and other countries throughout year.

The online arena is shaping up as the next battlefield for the console manufacturers Sony, Microsoft and Nintendo.

At the moment, income from online gaming is minimal. But some analysts predict that revenues could exceed $1bn by 2006.

No fees

It will be simple to set up, exciting to play and affordable

Chris Deering, Sony

Sony is not planning to charge a monthly subscription to play online. Instead gamers will need to buy a gaming pack at a cost of £44.99.

The pack includes a network adaptor to make the Playstation 2 internet-ready, an online game and a start-up disc featuring demos of upcoming games.

Sony aims to make its broadband packs compatible to play on as many European internet service providers as possible.

"PlayStation 2 owners with broadband internet access will be able to purchase a network adaptor and immediately start playing a great selection of multiplayer games online," said Chris Deering, President of Sony Computer Entertainment Europe.

"It will be simple to set up, exciting to play and affordable."

A range of online games will go on sale to tie in with the launch, including SOCOM: US Navy Seals, Destruction Derby Online Arena, This is Football 2004 and World Rally Championship Online.

Microsoft is planning to unleash its Xbox Live service in the UK in March, while on Wednesday Nintendo started selling online gaming adapters for its GameCube in the US.