Kmart stores this week began holding a under $40 game sale for Sony Corp.’s Playstation 3 and Microsoft Corp.’s Xbox 360 in a new retail promotion.

Titles discounted to $39.99 include Killzone 3, Mass Effect 2, Portal 2, Dead Space 2, Bulletstorm, Marvel vs. Capcom 3, WWE All-Stars, Dirt 3, Homefront, Red Faction: Armageddon, Tiger Woods PGA Tour 12, and Fight Night Champion.

Meanwhile, Inc. this week is holding a Dads & Grads Video Games Sale.

Discounted titles include Killzone 3: Helghast Edition at $59.99, Portal 2 at $39.99, Halo: Reach at $39.99, Battlefield: Bad Company 2 Ultimate Edition at $29.99, Tiger Woods PGA Tour 12 at $39.95, and Medal of Honor at $19.99.

Sony in May began sale of the PS3 160GB Call of Duty: Black Ops Bundle, which includes the PS3 160GB hardware, a copy of Activision Blizzard Inc.’s Call of Duty: Black Ops, the Call of Duty: Black Ops First Strike DLC Pack, and a Dualshock 3 Controller at $299.99.

Microsoft in Sept. will sell a new limited edition Xbox 360 320GB Gears of War 3 Bundle at $399.99.

Current Xbox 360 stand-alone SKUs include the Xbox 360 250GB hardware at $299.99 and the Xbox 360 4GB hardware at $199.99.

Bundle SKUs include the Xbox 360 250GB Kinect Special Edition Bundle at $399.99 and the Xbox 360 4GB with Kinect bundle at $299.99.

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