This is just a rumor so far but since the prices in the following table match the announced price drops by Microsoft it leads far more credibility to it.  It's also expected that this will be announced at the Leipzig Games Convention.

The changes to the Core are that it will be rebranded as the Xbox 360 Arcade and include a wireless controller, 256MB memory card, HDMI, and 5 Xbox Live arcade games.  It will sell at the Core's new price drop price.

source: http://kotaku.com/gaming/new-things/360-gets-european-price-cut-new-names-new-colour-291150.php

Probably the least painless way of going around the lack of in-built memory. Honestly think they would do better if they just dropped the price significantly.

As with the PS3, I don't think the thing limiting sales the most is people not thinking they're getting enough bang for their buck, but people just not wanting to spend so much money on a single purchase.

Possibly, but there is a problem here if true. It would piss premium users off as they don't have HDMI. They'd be like: PREMIUM isn't enough for the good port, but Core is? If they subsequently include HDMI on Premium then Elite users would be saying "We paid an extra $100 for what exactly? an extra 100GB and black finish?"

Still, I think Microsoft has skewed the price differential so badly that they better bloody well sweeten the Core and Elite deals soon, or they're deader than they are already. I wouldn't be surprised either way (sweetening or no).

On a similar note, I asked in a previous thread if specific SKU data was available, and I'd still like to see it on the site if the information's out there.

Worthless, The Arcade Games are going to eat up that 256 MB memory card that's coming with the system. Those Arcade Games have to be stored somewhere. Everyone should just get the Pro Edition, its the better choice out of the bunch. I got mine and its a 2007-07-07 manufacterd date and I got the new heatsink and HDMI port in the back.

@Takashii

Well they could put the five games on disc. If you have to download it you can download and erase. I would actualy say that I am really intresting in buying the arcade version.

Well, this seems like an interesting deal, but I have to ask Xbox 360 owners about something...

The 360 suffers any performance issue without HDD? If the answer is yes, then the premium is still a better deal for me.

 It doesn't just yet, but I think everyone will agree that the time is coming that a 360 without a hard drive is going to leaving you wanting.  Keep in mind that one BIG reason to have a hard drive is backward compatibility and demos.

Maybe microsoft will, at some point, offer the hard drive in a bundle at a really attractive rate with the first game to *require* a hard drive.   If they do, it will be a MS first party game and it'll have to be a *good* game and priced reasonably with the 20 gigger -- say $79 bucks or something like that... 

@fazz

Yes it does only if you like downloading movies or demos and content.

Why are people so negative against the core system??

Its sole purpose is to give options to customers who can't afford the Pro bundle. It's biggest problem was that in the past you needed to purchase a memory card. This as now been remedied.

If someone absolutly needs to purchase a console tomorrow and can only afford the Core then they can buy the system and upgrade it whenever they have a chance.

All you people dissing the Core system as gimped are missing the point... You're either ignorant of other people finances or a blind fanboy looking to bash a console.

@gebx

Agree and I also would like to state that the "arcade" thing actualy comes with some games too. It is a perfect purchase for myself that mayby wants to play on or two games on the box.

For you that wounders, the official price for the 360 premium has been 400€ in PAL but you could easily get one for 300€, with packed in games. Now in Sweden this means that a premium has costed 3000 SEK (I saw it for 2890 SEK today). The Wii cost around 2490 SEK. This can mean that the new arcade version of the core might go as low as 2000 SEK (the core cost 2490 SEK today) that is alot of game for the money.

If I want an harddrive I can import one from USA later on.