Sony announced last week its new Playstation 3 Slim, which is the company’s attempt to present a cheaper-priced console to meet customer requests for a price cut. With a new tag price of $300, it’s now within the price point that consumers want.

In an obvious attempt to steal the thunder from Sony, Microsoft has also decided to cut the price of its Xbox 360 Elite to $299 from its previous price of $399. The price of the Arade SKU will remain at $199. The Pro SKU, meanwhile, will be phased out.

The price cut will become effective on September 1, the same day the PS3 Slim becomes available.