With the Xbox 360 S making its way into the hands of its first US customers, Microsoft has confirmed to IGN that it will introduce a low-price $199 version this autumn.

The ‘Arcade’ version of the hardware was first confirmed at last week’s E3 event.

It’s still not yet known what cuts will be made to the hardware to facilitate the $99 saving over the new Xbox 360 S 250GB model.

The first iteration of the Arcade SKU of the now defunct original Xbox didn’t include a hard drive and also lacked some of the shiny trim seen on higher-end models. Later models included a low-capacity 20GB HDD.

Likely candidates for the chop in this new SKU are the in-built wi-fi and, most likely, a lower capacity HDD.

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