Microsoft set to reveal Xbox 360 Arcade replacement

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

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