Well, it looks like Microsoft has acknowledged what we've known for almost a week -- the Xbox 360 Arcade is real and shipping. When asked by the Financial Times, Microsoft's Robbie Bach said the $279 console was designed to draw in gamers who are "more casually focused, they're looking for a new family experience or they're more price focused." Robbie might want to tell the rest of Microsoft that the cat's out of the bag though -- their PR reps are still telling our buds at Joystiq that they don't have anything to announce.

[Via Joystiq]

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Microsoft sort of owns up to the Xbox 360 Arcade