Xbox 360 Core to be reborn as Arcade with free games?

Microsoft's recently cheapened Xbox 360 Core will also receive its first feature boost since the console was launched in November of 2005, say multiple reports from Europe and those close to Microsoft's Xbox marketing. A new product sheet indicates that the new system would be rechristened the Xbox 360 Arcade and would be pitched to casual gamers looking for games from the Xbox Live Arcade: a 256MB memory card would accompany the bundle preloaded with five popular games from the service, including Pac-Man Championship Edition and Uno. A wireless controller would also replace the wired pack-in model from the current version.

No concrete date was provided for the announcement, though the Xbox 360 Arcade is said to be in the works for a holiday 2007 release for at least Europe and would not increase in price to accommodate the extra hardware and software. Details are also unavailable regarding the potential inclusion of HDMI output; Microsoft has not denied rumors that it would include the digital port on its lowest-cost system but has so far claimed that it has "not announced" any plans to extend the feature below the regular Xbox 360.