LOS ANGELES (Reuters) - No. 1 video game publisher Electronic Arts Inc. ERTS.O on Wednesday said its franchise "Madden NFL" football series will support the launch of online play for Sony Corp.'s 6758.T PlayStation 2 later this year, but will not do so for Microsoft Corp.'s MSFT.O Xbox.

The two companies have touted online gameplay as the next key frontier for home video gaming because of the ongoing revenue potential as well as a way to turn the game console into an Internet gateway for the TV. Both are expected to heavily promote their services in the coming weeks.

Redwood City, California-based Electronic Arts said "Madden NFL 2003" will support the PS2's online functions, which will launch in August with the retail availability of a dual dial-up/broadband adapter for $39.99.

However, the same support will not be initially forthcoming for "Xbox Live," Microsoft's upcoming online service for the Xbox, which already has a broadband adapter built in.

"We are still in discussions, but at this point it does not appear that EA Games or that 'Madden Football' will support the online features of the Xbox this year," EA spokesman Jeff Brown told Reuters.

Both Sony and Microsoft cut the prices of their consoles this week, to $199 from $299. While Sony does not plan to charge for online play, leaving that choice to publishers, Microsoft reportedly plans to operate its own gaming network and charge a monthly fee.

The PS2 has a North American installed base of more than 11 million units, while the Xbox, which came out a year later, has an estimated base of more than 2 million units.

The third major game console, Nintendo Co. Ltd.'s 7974.OS GameCube, is already $199. Adapters for online play for the GameCube are expected this fall.

The news comes as the game industry prepares for next week's Electronic Entertainment Expo, or E3, in Los Angeles.

The show, the industry's most important of the year, is expected to focus in large part on the three consoles' online gaming initiatives, and numerous publishers are preparing announcements of online titles for the show.

Sales of video game hardware, software and accessories topped $9 billion last year in the United States and are expected to hit a record again in 2002.

Industry analysts have said the game business is in the early part of a multiyear growth cycle, with record revenue expectations driven largely by sales of the new consoles and associated games and peripherals.

Those analysts have said Microsoft might have some natural advantage in adding early subscribers because the online access is built in, and historically game console owners have been reluctant to purchase major add-ons for their consoles.