BlueAlien.org

     Engadget here http://www.engadget.com/2007/10/02/xbox-360-arcade-console-landing-on-october-23rd points out the speculation of a new SKU for the XBox 360 console.  CNet reports http://www.news.com/8301-10784_3-9792309-7.html?part=rss&subj=news&tag=2547-1_3-0-5 that the new Arcade will replace the Core system but come with an HDMI output, wireless controller and 256MB memory unit however still no hard drive.  The Arcade in the title indicates that five XBLA titles (Boom-Boom Rocket, Pac-man, Uno, Feeding Frenzy, and Luxor 2) will come preloaded/bundled disc with the system.  Thanks to both Amazon and Toys R' Us jumping the gun the rumors have meat that the system will be released.  Unfortunately the earlier omissions have since been pulled.  The expected release date is October 23rd.

Update:

Here is the official product page from Microsoft: http://www.xbox.com/en-US/hardware/x/xbox360arcadesystem/default.htm.