Microsoft have just announced the new Xbox 360 Arcade replacement that is much cheaper but apparently with lesser storage --4GB internal flash memory is quite a great deal for $199.99 packing a matte finish, and built-in 802.11n WiFi. Far more than this, looking ahead with standalone Kinect with game Kinect Adventures for $149.99 this coming November. And ooh, just wait more till the Holidays, you'll be getting the 4GB console, Kinect sensor, and game bundled for $299.99. Hit the continue link for the press release.
Engadget's update also told us that "Britons will be paying £129.99 for Kinect"