as regard to Arcade version rumour. I think there's NO WAY they will sell it for only 199. No way Microsoft is willing to drop it by THAT Much.
here's why, Arcade version is made to compete with Wii, not PS3, so it makes no sense for them to drop that sku to compete with PS3 at this point.
also, they have to drop the US price too because the US user would be pissed to pay more than the european counterpart (when was the last time US users pay more for a came console??), If that happens (they wont), then Microsoft can possibly justify the Pro version being twice as much and have to drop that too.
in short, Microsoft will see itself deeply in red again, and not really doing much help. They are much better off using that money and create more games.
Soriku (Feb 10/08): In 5 years the PS3/360 will be dead.
KH3 bet: "If KH3 comes to Wii exclusive, I will take a 1 month of sig/avatar by otheres open a thread apologize and praise you guys' brilliance." http://vgchartz.com/forum/thread.php?start=50&id=18379
Original cast: Badonkadonkhr, sc94597 allaboutthegames885, kingofwale, Soriku, ctk495, skeezer, RDBRaptor, Mirson,