E3 2010: Xbox 360 Slim Arcade coming

With the $299 Xbox 360 Slim already making its way to the North American High Street, Microsoft has confirmed that a second model is also in the works.

In the same way that the old machine came in two versions – a high-end Elite model and an entry-level Arcade SKU – product marketing issue Ryan Moore told GameSpot that the new machine would follow the same strategy.

However, the $299 unit will be the only one available for the foreseeable future, with no timeframe yet put on the launch of the second model.

What will be omitted from the cheaper version is unclear, though don’t be surprised to see a lower capacity hard drive and possibly no in-built wi-fi. However, the same 45nm CPU and GPU will be found inside meaning that it will retain the new design’s quieter, cooler operating conditions.

The Xbox 360 Slim is set for a UK launch on July 16th.

Microsoft has also confirmed that it will be dropping the price of existing models.