Sony’s delayed online community, PlayStation Home, is finally set to arrive later this month in the form of an open beta, the company announced Thursday at the Tokyo Game Show.

The service, which is best described as Second Life for PS3 users, basically allows players to create avatars and have their own virtual apartment, which they can then decorate however they see fit.

Home itself is free (like Sony’s Life), but certain clothes, furniture, and accessories will be available for purchase through the PlayStation Store. Players can also buy a larger living space with extra options.

Sony also expects Home to be an advertising haven. As users walk around and interact with other players and do…whatever else there is to do, game advertisements will be playing on the walls.

Quite a few publishers have pledged their support for the service as well, promising new content and/or advertisements. Sony announced 21 new companies at TGS, ranging from big names such as Activision, EA, Konami, Sega, and Ubisoft to smaller publishers such as Acquire, Genki, and Spike.

Having spent some time with Second Life, Home is one of those things that sounds like a great idea on paper, but in execution may end up a bit underwhelming. On the one hand, the PS3 has a much larger install base than the number of users on Second Life. But, given that most PS3 owners are aware that their system plays games, they may be less likely to frequent what’s basically a 3D, customizable, ad-supported chat room than the people who sign on to Second Life.

For casual, newer, and younger gamers, Home could be a great place to communicate with others or to just kill a little time decorating their virtual pad. Time will tell, though, if more traditional gamers will take to Home or if they’ll simply check it out briefly before going back to their game.