At the end of August, Microsoft confirmed what we've known for months: the 120GB XBox 360 Elite would be seeing a price drop to $300. Sure, the new system won't include high-definition cables of any kind, but what's the price of an HDMI cable between friends? While Microsoft claimed this price drop had been in the works for months and wasn't a reaction to Sony's own price reduction and hardware redesign, another wrinkle has been added to the pricing story.

Microsoft is now offering a $50 mail-in rebate to those who purchase the $300 Xbox 360 Elite, starting immediately. That's not all the news we have for your today, though, as the Mole spills the beans on an Elite holiday bundle, as well as information on an upcoming refresh of Microsoft's wireless adapter for the Xbox 360.

"Xbox 360 Elite puts all your entertainment in one place so you can play games, watch movies and TV shows, listen to music, and, coming this fall, keep up with your Twitter and Facebook social circles, all from your living room," the announcement states. "Additionally, with a Netflix unlimited membership and an Xbox LIVE Gold Membership you can instantly watch movies and TV episodes streamed from Netflix, recommend your favorite shows and share in a movie party night with up to 7 friends—all on Xbox LIVE."

The deal is valid for anyone who buys a system between September 22 and October 5, so the window for getting your hands on the rebate is rather small. This fits in with remarks Microsoft's Aaron Greenberg made recently to Eurogamer. "I don't believe the price cuts that both companies have made will impact the market dynamics too dramatically in the long term," he stated. "We typically see a month or two of lifts and share adjustments, but then things tend to settle back to roughly the established market ranking."

Adding this rebate on top of the $100 price drop is a good way to steal some of Sony's momentum, and to maximize the short-time sales boost Microsoft expects from the recent price cut. Right now the specific details on the rebate are not available online, but you should be able to find the information page on Microsoft's site in the next few hours.

With $50, you can pay for a year of Xbox Live, get an extra controller or game, or you could simply pocket the money. This brings the price of the Xbox 60 down to the cost of the Nintendo Wii, although by all accounts Nintendo's hardware will see a price drop by the end of the month. Is there a connection between that nearly confirmed rumor and this rebate? Anything is possible in this generation's pricing war.

The Mole has also chimed in with some more info on Microsoft's plans. Starting in the middle of October we'll be seeing an Elite system bundled with copies of both Pure and Lego Batman, giving you a little more value for your $300 through Christmas.

Microsoft has also confirmed the existence of an 802.11n adaptor for the Xbox 360, and the Mole has let us know that the hardware will be released for $100, with the existing 802.11g adapter dropping in price to $79.99. The hardware will feature two antennae for better reception, and should help deliver the bandwidth needed to stream 1080p video instantly, as Microsoft claims is possible with the upcoming Zune video store update to the Xbox 360.

A rebate, new bundles, and less expensive wireless. This is a big day for Microsoft news.