Rumour: Microsoft to announce "Xbox Lite" for $100 in late 2013.

[Chark]

Yes, the ARM thing doesn't make much sense. Would it have an emulator? But the concept of a cheap stripped down 360 is still interesting. If they go with 2 SKU's for Xbox 3, one DD only and the other with physical capabilities and start filling in the gaps of digital retail games, a DD only 360 would make sense. Still screw these rumors, let's just sit tight until E3.