Just to prove wrong those among us who doubted the existence of a new bottom-of-the-range Xbox 360 SKU, intended to replace the Core, stores across the US have started flogging just such a package. Called the Xbox 360 Arcade, the new model is presumed to replace the Core, as opposed to co-existing, no doubt to try and encourage the casual gamers still holding out against buying an Xbox 360.
As with the Core, the Arcade SKU fails to include a hard drive, but does at least bundle a 256MB memory card, which considering you'll need space to store your downloads and saved games, is rather necessary - not that you'll fit many on that small a card. The package also includes five free Arcade titles. The box art shows that two of them are Packman and Uno, games obviously in need of an HD work-over, but the other three are still unknown.
Microsoft hasn't confirmed either the existence of the new SKU (where have we heard this before?) but the numerous photographs floating around various sites should assuage those assuming a certain Adobe product's influence. More importantly, this being a UK-based site, no UK date or prospective pricing is available. I'm betting soon and £179.99 - any takers?