Microsoft's Robbie Bach recently revealed some first details about Microsoft's latest worst-kept-secret, the Xbox 360 Arcade system bundle:
The Arcade model will retail for USD 279, and will include a wireless controller and a 256MB memory card. The console will have HDMI output.The package will also contain five Xbox Live Arcade games, hence the title, but it is unclear whether these are full versions or merely demos. Since the system does not have a hard drive, the arcade titles are likely to come on a separate disc.
As nice as pack-in games are, I wouldn't buy a 360 without a hard drive. That tiny memory card will fill up quick – especially if you're buying Live Arcade games.