If video games are on your shopping list this year, you'll be happy to know that Walmart is cutting the prices of new video games 15-20% in an attempt to lure customers away from specialty video game store GameStop. The discounts are available starting now on the top 25 video games at Walmart and can be purchased in store or on-line. On top of the game discounts the retailer is giving a $50 gift card with the purchase of a Nintendo Wii, which brings the final cost down to just $150.

The list of games that Walmart is discounting as part of its "Game-On" promotion that runs through December 24th includes the following new games.

• Mario & Sonic at the Winter Olympics (Wii) – now $40
• Lego Rock Band (Wii) – now $40
• Rock Band: Beatles (Wii) – now $40
• MySims: Agents (Wii) – now $40
• Tekken 6 (Xbox 360 and PS3) – now $50
• Madden 2010 (Xbox 360 and PS3) – now $50
• WWE 2010 (Xbox 360) – now $50, WWE 2010 (Wii) – now $40
• Batman Arkham Asylum (Xbox 360) – now $50
• Dragon Age: Origins (PS3) – now $50
• Left 4 Dead 2 (Xbox 360) – now $50
• Halo 3:ODST (Xbox 360) – now $50
• Uncharted 2 (PS3) – now $50

According to The Wall Street Journal (subscription required) GameStop isn't the only store that will feel the effect of these discounts; Best Buy, Toys R Us and other retailers who count on strong 4th quarter game sales may need to respond with price cuts of their own or lose out big this holiday season. If consumers are lucky we will see price war and reduced prices on video games across the board this year!

In the long run Walmart's 20-day discount will likely have little effect on GameStop since many gamers visit the store to buy and sell used games at already discounted prices; something they cannot do at Walmart.