Microsoft is giving the boot to the cheapo Xbox 360 Core system, replacing it with the newer and better Xbox 360 Arcade for the holiday season. While the Core had no storage at all and a wired controller, the Arcade comes with a 256MB memory card and a wireless controller. In addition, it comes with 5 free Xbox Live Arcade games.

The best part? The Arcade will stay at the Core's pricepoint, making it a great bargain that's right around Wii price levels at $279. The addition of a memory card is a great one, as it not only gives people a place to download and store Arcade games, but it also helps out game publishers who want to require storage for their games, as publishers such as Rockstar have talked about. No date on this yet, but expect it sooner rather than later. — Adam Frucci

Ars Technica, via Electronista