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 document, 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.”