New 360 Arcade Unit

Demon_Skeith

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It looks like Microsoft's new Arcade bundle coming this fall will not include a hard drive after all.

A listing spotted on Amazon Germany suggests the new bundle comes with only 4GB of storage; likely in the form of a USB stick or perhaps internal flash memory. The listing also notes its release date is August 20, 2010. No word if this will also include built-in Wi-Fi.

The price is currently set at €149 ($190 US), though Microsoft confirmed to us last month the new Arcade unit will be $199 when all is said and done.

Apparently the slimmer Xbox 360 is flying off store shelves as the company is claiming its seeing "unprecedented demand" for the new console since it hit retail late last month. The NPD will release its U.S. console sales for June this Thursday.

source
 
I think 4GB of internal flash would be better then a bundled USB flash drive since they are harder to lose. I can see people forgetting to return the 4GB USB flash drive if they return Xbox 360 arcades, but keeping the USB flash drive. Plus, someone can just walk past your 360 and unplug your drive and put it in their pocket.
 
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