As revealed weeks ago, Microsoft Corp. has introduced a new version of Xbox to replace its Xbox 360 Core, the Xbox 360 Arcade. This is the "entry level" Xbox, which doesn't have a hard drive. Microsoft's offering sports a few additions like a wireless controller, HDMI output and a 256MB memory card (to make up for the lack of a hard drive). The Core sold poorly because it cost too much ($299) and didn't have any games bundled in.

Microsoft also bundled the entry-level console with five free Xbox Live Arcade games that are burned on to one disc. The games are "PAC-MAN Championship Edition," "Uno," "Luxor 2," "Boom Boom Rocket" and "Feeding Frenzy". The Arcade comes, as above mentioned, without the hard drive that is included in the Premium Pack and the Elite Pack. In early October, preorders for the Xbox 360 were apparently already in place at Amazon, and were (until people became aware of them) even at Toys R Us. The price has remained as previously announced, at $279.99.

"In addition to offering an incredible all-in-one package for families to get right into the fun, the Xbox 360 Arcade system features the industry leading family settings that allow parents to control what their kids are watching and playing, and we know how important that control is to families around the world," said Chris Lewis, Regional Vice President, Microsoft Entertainment and Devices Europe.

In addition, the company plans to boost sales of its family-oriented pack by announcing new content available for download through Xbox Live, which includes 50 episodes of the Looney Tunes cartoon series, making this the first time they're available for digital download. "Looney Tunes" shorts have previously been streamed on WB sibling company AOL, but have never been for sale on the Internet before, Variety reports.

Microsoft is also reportedly adding Nickelodeon series "The Backyardigans," "Blue's Clues" and "iCarly."

"We know families are making holiday purchases are not going to buy multiple consoles and we think we are offering a great value to them," said Aaron Greenberg, Xbox's group product manager.

Xbox Live is the only video digital video store to offer content in high definition and is ranked second in sales after Apple's iTunes.

Also, there is a new rumor which is making headlines around the tech and gaming sites. According to an article from the tech Australian site Smarthouse Microsoft is working with Toshiba on a new version of Xbox 360. The new version will have a larger hard drive and new software. But the big news is that the new Xbox 360 will integrate a HD-DVD unit.

Smarthouse added that the HD-DVD units is not the only upgrade intended for the new Xbox 360 and a dual HD TV tuner and a docking port for an MP3 player are also considered. We'll have to wait it out and see what they announce officially.

Worldwide, so far, Nintendo has sold 9.3 million units of its Wii, Sony 5 million of its PlayStation 3, also put on the market in 2006. Microsoft Xbox 360 has been on sales since 2005 and its sold units are now accounted for 11.6 million.