It would appear today that although Microsoft hasn't given it the all-official, there is a new XBOX 360 SKU beginning to show up on store shelves. Dubbed the XBOX 360 "Arcade", this model is a cutdown version set to replace the previous entry level "Core" system. It looks to be quite an improvement over the Core package though, with an included 256MB memory unit, wireless controller and the addition of a HDMI output too!

At a confirmed price point of $279.99 it looks to be great value too, especially given it gets its "Arcade" name from an included compilation disc comprising Boom-Boom Rocket, Pac-man, Uno, Feeding Frenzy, and Luxor 2.

Engadget have sourced a number of photos of the package (both boxed and unboxed) here.

Thanks to Emanuel, an intrepid tipster who went above and beyond the call of duty, we managed to get a full unboxing of the Xbox 360 Arcade before Microsoft has even been able to send out a press release about the thing. Whenever the console officially lands, you can expect to pick up the hard drive free console for around $299.99 (Amazon said $279.99), which includes a 256MB Memory Card, a Wireless controller, an HDMI port minus the cable, and a disc that includes copies demos of Xbox LIVE Arcade games Boom Boom Rocket, Feeding Frenzy, Luxor 2, Pac-Man Championship, and Uno. Check out the full gallery below.