If its true that you can install games to USB drives (after the usb drive support update coming soon) and you happen to own a usb hard drive (or 16 GB usb flash drives, now may be a good time to get an Arcade if you really want a 360. In Canada we had it selling for $130 not that long ago. Awesomeness.

I gotta get one of those.

I thought the arcade version was dead

Looks like a temporary price drop by the retailer not M$.

$160 for xbox360 arcade+$130 for 250HDD+$40 live subscription = $330. i will wait until the elite goes down to $199.

Or you could use two 16 gig flash drives for $40.

companies like amazon and walmart love having price wars , thats all it is.

nice deal, might order one for my niece

MS should be definitively put arcade at this point... 160$ will stop ps3 in usa, in waiting for 360 slim and natal...

Well It's only $10 more then the $150 mark. However, you also get a free wireless controller on top of what you get which is a $30 value.