As reported the unannounced Xbox 360 Arcade bundle was spotted on Target shelves over the weekend. Now Engadget has received photos from someone who actually bought the Xbox 360 Arcade and unboxed it.

The Xbox 360 Arcade has an HDMI port and comes with a 256MB memory card, wireless controller and a disc containing arcade games like Boom Boom Rocket, Feeding Frenzy, Luxor 2, Pac-Man Championship Demo, and Uno. The price for the Xbox 360 Arcade is $279.99.
I assume that Microsoft's PR will finally get around today to tell us officially about this Xbox that aims to battle the Nintendo Wii this Holiday shopping season. Tip to Microsoft, shave of another $30 to really make things interesting.

See the photos of the Xbox 360 Arcade unboxing on Engadget.