It was all but inevitable that Microsoft was going to hit back at the PS3 Slim with its own $299 120GB console, and while we're still waiting on official confirmation Microsoft, this purported Walmart ad clipping sure seems to know where the Xbox 360 Elite is headed. Watch out, folks, the video games aisle at your local big box retailer is about to get spicy.

[Thanks, Randall]

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Look out, Slim: Xbox 360 Elite showing $299 in new Walmart ad