Updated / Arcade version of new Xbox 360 for $199?

Update: Microsoft has confirmed a $199 version, along with a 360/Kinect bundle SKU.

Original story: Looks like there’s an ‘Arcade’ version of the redesigned Xbox 360 on its way.

The standard edition of Microsoft’s new console, unveiled at E3 last week and pictured above, has a storage capacity of 250 GB HDD. But an internal marketing document suggests a cheaper version is in the works. Could it be without any on-board storage or HDMI, or just one with less storage?

Erm… we dunno. But we do know it will cost $199. That’s $100 cheaper than the standard edition.

The cut-price console was referred to in an internal Microsoft document, spotted by Kotaku. Using a Q&A-style format, the document is light on details, merely saying, “Q: Will you sell a $199 version of the new Xbox 360? A: We will offer a $199 Xbox 360 this fall.”

Elsewhere in the┬ádocument, Microsoft have confirmed that there will be an official Xbox 360 Kinect bundle. However, “we have no additional details about pricing or retail strategy to share at this time.”