SONY has signalled it may withdraw its artists from Apple's iTunes store and withhold its games from the iPhone in a sign the two companies are on the brink of all-out war.

Sony plans to open a competitor to iTunes, a music streaming service called Music Unlimited, in Australia soon.

Michael Ephraim ... "We are not as closed as Apple is."

Another service launching later this year will enable mobile phone users to pay and play first generation PlayStation games on their handsets. The head of Sony's games unit in Australia said it was unlikely to be available on the iPhone or through iTunes.

Two weeks ago Apple blocked Sony's electronic book application from the iPhone because it would have bypassed Apple's system for buying content.