Report: MS to bundle Kinect with 360

And does plan to do $199 slim 360.

Microsoft does plan to release Kinect as part of bundles with the Xbox 360 console, and also plans to release a $199 version of the new Xbox 360.

That's according to an "internal marketing Q&A" uncovered by Kotaku, which noted that Kinect will be offered as "part of a bundle with the newly designed Xbox 360 console".

It also simply said, "We will offer a $199 Xbox 360 this fall." That's something that was mooted during E3 last week.

Prior to the launch of the new Xbox 360, Microsoft offered two models in the US - the Elite, featuring a 120GB hard disk, for $299, and the Arcade, with no hard disk, for $199. The launch of the new 360 saw both take a $50 price cut. Both will be discontinued once stock clears.

The same models are also sold in Europe, where the new 360 goes on sale on 16th July. However, UK Xbox boss Neil Thompson indicated to Eurogamer last week that the changeover will be slightly different.

"The Elite model we'll slowly phase out, but we're continuing with the Arcade model as it stands," he told us in a video interview you can watch below.

Xbox UK boss Neil Thompson speaks to Eurogamer TV during E3 2010.

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