Following the reveal of its new Kinect motion control tech and games at E3 earlier this month, Microsoft is soon to reveal a $199 (£134) Xbox 360 Arcade replacement.

The latest budget version of the Xbox 360 is expected to arrive just in time for Christmas 2010.

Cheap and casual

The cheapest-in-range Xbox 360 Arcade unit has proven popular with families and casual gamers, although hardcore gamers are turned off by its lack of on-board storage (the console only has 256MB built-in).

The new Xbox 360 Arcade will be available for a mere $199 (or £134) in the States later in the year. No official word on any plans for a UK release or pricing, as yet.

Microsoft's Kinect kit will also be available as a bundle with the new console, although no word on pricing on that yet either.

The news on the new budget Xbox 360 and plans for Kinect console bundles comes via a leaked Microsoft internal marketing Q&A.

The Microsoft document was picked up by Kotaku, and it clearly states that Kinect will be sold both as a standalone device and also as "part of a bundle with the newly designed Xbox 360 console," adding that there are, "no additional details about pricing or retail strategy to share at this time."

Via: Kotaku