Wednesday Sony announced it was ready to launch Home for the Playstation 3, an online 3D social networking environment, after months of delay in the much-awaited service for fans of the console.

Home is not dissimilar to Second Life produced by Linden Lab, as it also lets users make virtual characters called avatars which interact in cyberspace. Similarities can be found to the Nintendo Wii’s Mii avatars as well. Home will be available as a free download for the Playstation 3.

Home is the latest in a series of recently added online services for the PS3. Others include video downloads to the Playstation Network, which reportedly boasts 15 million subscribers worldwide. This and other services are part of an attempt to catch up to rival Microsoft and its Xbox 360 console, which currently outsells Sony.

They both fall behind Nintendo however. Its Wii game console was launched in November 2006, the same month as The Playstation 3, and has since sold as many consoles as both Sony and Microsoft combined. Sony has sold 16.8 million units worldwide, while Nintendo has a comfortable lead with 34.5 million units.

Sony is hopeful that Home will be the edge Sony needs to turn its video games unit profitable, as it has lost some $3.8 billion over the last two years.

While the Home service is free for its users, monetization opportunities exist, as Sony hopes to charge companies to interact with participants. Some of the first firms o join are clothing designer Diesel, furniture designer Ligne Roset and energy drink manufacturer Red Bull (some say it also gives you wings!), film studio Paramount Pictures and video providers Hexus TV and Eurogamer.

Home will also offer mini-games, videos and special events, as well as being a full-fledged social network with meetings in virtual apartments and public gatherings. Users will be able to chat through instant messaging, voice and video communication.

Home was first announced by Sony in March 2007 and was set for a launch later the same year. It subsequently got delayed to October 2007 and then again in April 2008. A closed beta to a limited number of users started in August.