Much rumoured, and finally confirmed just in time for Christmas, Microsoft has announced the launch of the Xbox 360 "Arcade" console that they say "delivers games and content to everyone in the family" for £199.99.

Available in stores in the UK from Friday 26th October 2007, Xbox 360 Arcade comes in at "Core" level but is the first Xbox 360 console to include five family-friendly games.

Xbox 360 Arcade also includes a wireless controller, an HDMI connection to enable high-definition output and 256MB of memory.

The Xbox 360 Arcade console will include the full versions of the five best-selling games from the Xbox LIVE Arcade including "PAC-MAN Championship Edition", "Uno", "Luxor 2", "Boom Boom Rocket" and "Feeding Frenzy".

"As European families gather together this Christmas, it's the perfect time to launch a family orientated Xbox 360 package that plays games, video and music for everyone to enjoy", said Stephen McGill, head of gaming and entertainment for Microsoft UK.

"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."

Microsoft says the Xbox 360 Arcade comes as part of a broader initiative to bring the Xbox 360 experience to families everywhere, no doubt trying to capture some of the Nintendo Wii's family friendly success.