The Old $199 Xbox 360 Still Alive, But Slated for Update

The $199 Xbox Arcade will remain on shelves while the refreshed $299 Xbox 360 is released. But, we've received confirmation that the Arcade will be getting a makeover as well. Update: Price drop!

The General Manager of Xbox System Development and Test, Leonard Del Castillo, told us today that the $199 arcade will be aesthetically refreshed down the line, but he had no news on exactly what that would entail. (We're guessing the $199 model will be missing Wi-Fi and may have a smaller hard drive.) Until the white Arcade is refreshed, it will continue to be sold.

Those who plan on upgrading from the old 360 will be happy to know that the Xbox hard drive transfer cable, which was formerly available only with an Xbox hard drive, will go on sale as a standalone cable for $20.

Additionally, Castillo confirmed that a Kinect bundle was on its way—the worst kept secret in Microsoft's arsenal. Or wait, was it even a secret? We've lost track on that one.

Update: According to our pals at Kotaku, there will be some price drops on the older Xbox gear come Tuesday:

With the announcement of the new Xbox 360, older models are dropping price by 50 bucks, according to an internal memo from major retailer Target.

The Xbox 360 Arcade is dropping from $199.99 to $149.99 at Target. The Elite will drop from $299.99 to $249.99.

The Modern Warfare 2 Limited Edition will drop from $399.99 to $349.99. The Final Fantasy XIII and Splinter Cell Xbox 360 bundles will drop the same way.

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