Update: Sony has confirmed that the long-rumored PlayStation 3 Slim will be in stores the first week of September, priced at $299.99. It will be 33 percent smaller, 36 percent lighter, and should retain all the features and functions of current PS3 consoles but with a 120GB drive. Check out some images after the break.

Rumors of a slimmed-down, cheaper version of the PlayStation 3 have been all but confirmed today. While Sony has yet to make an official announcement, both Kmart.com and Sears.com (which are owned by the same company) have begun putting order pages up for the new console priced at an all-time low of $300.

An ad on Kmart’s website states that “the rumors are reality” and proclaims the arrival of a “new low price and a new exciting PlayStation 3.” Furthermore, the preorder page describes a PS3 Slim model with a 120GB hard drive and a Blu-ray player. The release date? Less than a week from now, on August 24. However, given that retailers are probably sitting on a stockpile of current-generation PS3s, I wouldn’t be surprised to see this date pushed back a little bit.

A recently leaked banner ad from entertainment media retailer FYE could be an indication of this. The ad describes a new low price for current models “while supplies last,” cutting the price of the 80GB console to $300 (down from $400) and the 160GB version to $400 (from $500). Whatever the case may be, we’ll probably know for sure later today when Sony is slated to begin its press conference at GamesCom.