The intersection of video games and real life is a fantastic place to play, as evidenced by Roombas , Halo and the occasional six-string guitar , but all you really need to blur reality is a webcam, an R/C car and a studio filled with cardboard.

The intersection of video games and real life is a fantastic place to play, as evidenced by Roombas , Halo and the occasional six-string guitar , but all you really need to blur reality is a webcam, an R/C car and a studio filled with cardboard.

Microsoft showed off its new retro-tastic Game Room UI for Xbox 360 in playable form at GDC last week. While the “make a virtual representation of a gaming space” idea might seem ripped straight from Sony’s Home , there aren’t really any actual similarities — outside of the fact they’re both in 3D, at least

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Microsoft’s Game Room for Xbox ‘rewinds’ the hits in our hands-on demo
Despite a few harrying run-ins with some large white tents at Manhattan’s Fashion Week-hosting Bryant Park, we can honestly say we have no idea what’s “in” this year for arcade gaming headgear.

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Metal Gear Arcade mixes 3D glasses with head-tracking for this season’s hottest new look
Shoulder buttons? Never heard of ‘em.
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Hori Real Arcade Pro Premium VLX has a name to match its size, price
It’s not quite a $99 Xbox 360, but if this apparent Walmart scan via Kotaku is to be believed, that $199 Arcade version is getting a $100 gift card promotion going into effect this Saturday.

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Leaked Walmart ad reveals Xbox 360 Arcade with $100 gift card, $300 HP G60 laptop
Can’t say we’re all that surprised given other sightings, but one anonymous tipster has sent us pics from a local Walmart of the 120GB Xbox 360 Elite in a shiny white package with a back-of-box chart that neglects to mention the Pro models, essentially striking it from the records. It’s still scanning at $399 for now, but having seen multiple retailers’ print flyers — including Walmart’s own — quoting $299, the computers very well may be updating just after some official Microsoft announcement, which wouldn’t surprise us at all if it happen sometime this week, just ahead of the PS3 Slim launch

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Xbox 360 Elite in white package in the wild, Pro SKU missing on back-of-box chart
It was all but inevitable that Microsoft was going to hit back at the PS3 Slim with its own $299 120GB console , and while we’re still waiting on official confirmation Microsoft, this purported Walmart ad clipping sure seems to know where the Xbox 360 Elite is headed. Watch out, folks, the video games aisle at your local big box retailer is about to get spicy .

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Look out, Slim: Xbox 360 Elite showing $299 in new Walmart ad