200w ago - As previously reported, today the sales ads for the first week of September at Walmart, Gamestop and Meijer show the Xbox 360 Elite priced at $299 and replacing the current Pro SKU which Microsoft is phasing out.

Engadget has managed to get a leaked photo of the Walmart ad as you can see below.

To quote: "In a move obviously designed to offset Sony's recent PS3 redesign and price drop, the $299 price point will take effect on the same day as the new PS3 launches - September 1st. The Arcade SKU will remain at $199."

Expect an official Microsoft announcement soon...

200w ago - Here is a follow-up video from Jack Tretton on the earlier PS3 Slim 120 GB GamesCom announcement along with some PS3 Regular vs PS3 Slim Comparison Pics and a PS3 Slim Pack Shot.

To quote: It's confirmed! The PlayStation 3 is now available for $299. Yes, NOW!

Today, Kaz Hirai also announced a new, slimmer form factor 120 GB PS3 (available September 1st). SCEA President and CEO Jack Tretton shows off the new hardware in this video.

Itching for a closer look at the new PS3? We've got pics.

Check out the videos below!