There has been a lot of talk about the Xbox 360 Core being discontinued at major retailers.   Well it seems that the Core as we know it will be replaced with a new package called the Xbox 360 Arcade.  Images of the new box and it's contents have already leaked to the internet.  The new green box will include a wireless controller, a 256MB memory unit and 5 Xbox Arcade games.  This newly branded model will retail for $279. 

it is still a rumor but I would expect to hear something from Microsoft this week.  There are two large game conferences going on this week, one in Europe and another in Seattle. It is already rumored that the Xbox 360 price cut will be heading to Europe and the new version of the 360 could be the big US announcement.  Hopefully we will hear if the 360 Arcade will include HDMI and the hardware fixes that have gone into the Elite and the Pro.

I have to say this is a very smart move for Microsoft.  They need to find a way to appeal to the casual gamer and offering a system that will include several Xbox Arcade titles is a good start.  The system is a much better deal than the original Core because the new system will come with at least $25 worth of games, a $40 memory unit and a wireless controller (original came with a wired controller).  The box suggests that two of the games that come in the bundle will be Pac-Man and Uno and I would not be surprised if Geometry Wars and Hexic 2 are also included.  So the $20 price drop plus $75 worth of extras makes the Xbox 360 Arcade an attractive deal. 

http://kotaku.com/gaming/rumor/european-360s-get-new-names-new-colour-291150.php