The rumors were pretty solid but now its official Microsoft has released the XBox 360 Arcade. This will replace the XBox 360 Core, priced at $279.99 and will come with an HDMI port and 5 XBox Live Arcade games on a 256MB memory card.

This is getting dangerously close to the Nintendo Wii’s $250 price point, which is obviously who Microsoft is trying to compete with with this product. This is a step in the right direction but I’m still convinced that there won’t be mass adoption of these next generation consoles until they drop below the $200 price point, I truly believe that that is the sweet spot.

XBox 360 Arcade