Microsoft set to reveal Xbox 360 Arcade replacement

New budget gaming for Christmas

Kinect and new budget Xbox 360 arcade bundles to be sold later this year

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