The Xbox 360 Arcade is officially available today, at a price of $279.99:

REDMOND, Wash. — Oct. 22, 2007 — Just in time for holiday, Microsoft Corp. today released a new Xbox 360® console that delivers games and content to everyone in the family for an incredible value of $279.99 (U.S. estimated retail price)*. Available in stores beginning today, Xbox 360 Arcade console is the first Xbox 360 console to include five family-friendly games, a wireless controller, a high-definition multimedia interface (HDMI) connection to enable high-definition output if desired and 256 MB of memory useful for storing games and entertainment content. At $279.99, the Xbox 360 Arcade console will include five best-selling games: “PAC-MAN Championship Edition” (NAMCO BANDAI Games America Inc.), “Uno” (Carbonated Games), “Luxor 2” (MumboJumbo), “Boom Boom Rocket” (Electronic Arts Inc.) and “Feeding Frenzy” (Sprout Games).

Read the entire press release here.

It’s a sweet system at an awesome price — but will anyone actually be able to buy one for $279.99? Or will retailers play the bundle game, as they have with the Wii and other versions of the Xbox?