Xbox 360 Arcade system confirmed?

What we heard: In August, rumors ran amok that Microsoft would be discontinuing its hard-drive-less Core Xbox 360. According to unconfirmed screens unearthed by Kotaku, the baseline model would be replaced by the Xbox 360 Arcade System before the year's end. For the same $279 price point, the Arcade System would come with a wireless controller, a 256MB memory card, and five free Xbox Live titles.

Speculation that the Core's days were numbered increased last week, when top game specialty retailer GameStop reportedly removed the Core 360 SKU from its database. When queried by GameSpot, Microsoft issued the following denial: "We are still manufacturing the console included in the Core SKU. We believe $279 is a great entry point for next-generation gaming and a SKU at that price will remain an important member of the Xbox 360 family of consoles."

Though seemingly categorical, Microsoft's carefully worded response left open the possibility of a repackaged version of the Core console going on sale. Now, two major online retailers--Toys 'R' Us and Amazon.com--have posted product listings for a "Microsoft Xbox 360: Arcade System." Though the pages are blank, they do share two important facts--an October 23 release date and a $279 price tag, same as the Core.

The official story: As of press time, Microsoft had not commented on either product page.

Bogus or not bogus?: Though retailers can be wrong, this double-shot of evidence is compelling. A $279 360 with five arcade games could prove a solid competitor to the $249 Wii, especially when Nintendo has publicly warned its console will remain in short supply through next year.