Walmart is supposedly dropping their price on the Xbox 360 Elite model by a hundred dollars. According to the catalog, customers can pick up a new Elite for $299 starting on August 30. There have been a lot of rumors about the Elite models receiving a price cut to compete with the PS3. Now that the PS3 Slim has been officially announced, this rumor seems to have substantial weight behind it.

Oh, man. This ish just got real, son. Last week, a supposedly leaked Meijer's catalog revealed a $100 price cut for the Xbox 360 Elite SKU -- we weren't sure what to make of it, but a recent Walmart catalog (due to hit stores on August 30) revealing the same exact discount adds a hefty amount of credence to rumors that Microsoft is dropping the price on the console's 120GB SKU. You can see the full ad posted after the jump, courtesy of one of our readers (thanks, Patrick). A few sites have gotten the ad, presumably from different sources, leading us to believe it's not just a high-quality fake.

If it is legitimate -- and the rumors of an Elite price cut end up being true -- then the flames of console war are likely ready to flare up once again. For the first time this console generation, Sony and Microsoft would have two SKUs available at the same price. The resulting struggle for market dominance would be brutal.

McClubbin via joystiq.com »