In response to the release of Sony's $299 PlayStation 3 Slim, Microsoft has announced it will drop the price of its Xbox 360 Elite from $399 to $299.

Sony has confirmed it will release a smaller, less expensive version of the PlayStation 3 called the PlayStation 3 Slim. The console is expected to be in stores by September and have a price tag of $299.

Check out a trailer and screenshots for the forthcoming video game Bionic Commando for the PlayStation 3 and Xbox 360.

Check out new gameplay footage from the highly anticipated video game SOCOM: Confrontation for the PlayStation 3.

Video game consoles like the PlayStation 3 and Xbox 360 use more electricity than refrigerators, even when placed on "stand by," according to an Australian consumer agency. Experts recommend turning off or unplugging the PS3, which reportedly guzzles five times more electricity than a fridge over the course of a year. (via Gizmodo)

Despite a sluggish U.S. economy, video game sales are thriving, increasing by 57 percent in the last year. Popular video game Call of Duty 4: Modern Warfare for the Xbox 360 and PS3 has sold over nine million copies worldwide.

Sony, maker of the PlayStation 3, says a decade from now, nine out every 10 of video games will be purchased through downloads. (via Kotaku)

Sony announced it will release a 40-gigabyte, $399 PlayStation 3 on November 2. The new PS3 is $100 cheaper that the current 80-gigabyte version and will have no backwards compatibility with PlayStation 2 games. (via Kotaku)