Don't fancy forking over full whack for a new Xbox? Microsoft provides the solution.

Microsoft has confirmed that it's stopping production on the budget Xbox 360 Arcade - the cheapest of the Xbox range with a mere 256MB of built-in storage - and replacing it with a similar budget version of the new 360 sometime later this year.

The glossy black wonder of the new Xbox 360 Arcade will be available for a lowly $199 (or £134) in the States - $100 cheaper than its bigger brother.

Source: Microsoft reveals Xbox 360 Arcade replacement | T3 magazine