We've been hearing rumors of a $100 price cut for the 120 GB Xbox 360 Elite for a few days now. An image of the console at its new price was snapped in a leaked Meijer's catalogue, and now we've got more evidence of this change to Microsoft's line-up. Engadget has a snapshot from an unreleased Wal-Mart catalogue that also lists the Xbox 360 as selling for $299.

This isn't official word from Microsoft, but the fact that two major catalogues both showed the same thing leads me to believe that this price cut is pretty much a given. It makes perfect sense from a business standpoint. With the release of the PS3 Slim, the Elite is now the most expensive console on the market.

Microsoft can't have that and, since the Xbox 360 is the only console that isn't in steep decline right now, they're able to afford a little reduction in their profit margins. Redmond must think that this move will let the air out of Sony's sails a bit, and keep the Xbox on top of the console game as we turn into the holiday season. They may be right.