The new PS3 slim will hit the store shelves in September for $299, with a 120 gig hard drive, a DualShock 3 gamepad, HDMI support and its 33 percent smaller case. Microsoft's XBOX 360 costs $299 and has a 60 gig drive. The PS3 Slim is powered by a new 45nm version of the Cell processor, which runs at the same speed as the 60nm processor in the "old" PS3 but is smaller and more energy efficient. Power consumption for the Slim has also been cut to two-thirds, "helping to reduce fan noise," which is important.

Prior to the announcement of the slimmer PS3, Sears and Kmart had already listed the device for pre-order on their websites.

The K-Mart ad description reads "The Rumors Are Reality, New Low Price & A New Exciting PlayStation 3." The model is listed as "Item# 018W014436760001 Model# PS3 SLIM PRESELL". Sony may provide more details later today during a press conference at GamesCom, the annual video game expo held in Cologne, Germany this week.

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