VGChartz has received multiple confirmations today that the latest sales papers for the week of 1st September to 7th at Walmart, Gamestop and Meijer show the Xbox360 Elite priced at $299 and replacing the current Pro SKU which Microsoft is phasing out. This had been rumored last week with some leaked shots on Kotaku and hints from various analysts but we have been cautious in reporting the story as fact until we've had some direct confirmation for ourselves.
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.
We'll have more info when it arrives and an analysis of how we think this will affect the market. Expect an official Microsoft announcement soon.
Update - Engadget has managed to get a leaked photo of the Walmart ad as you can see below: