We already knew that Microsoft was planning on offering a cheaper version of its new, smaller, glossier Xbox 360, but we didn't know much more about it. Thanks to Amazon Germany, now we know.
Microsoft documentation had previously outed a $199 USD Xbox 360 S at E3 2010, planned for a fall release. Amazon.de says that new console bundle will come with 4 GB of storage, presumably on either internal flash memory or via USB flash drive, not on a hard drive.
Amazon.de pegs the release of that new Xbox 360 Arcade bundle for August 20, right in the middle of this year's Gamescom convention in Cologne, Germany. It also lists a price of €149, about $189 USD. Look!
Don't be surprised, budget minded Xbox 360 owners, if Microsoft has an announcement soon.
Xbox 360 4 GB Arcade System Bundle [Amazon.de - thanks, Khai!]