Microsoft (News - Alert) is getting ready for the holiday season with lots of emphasis on its Xbox gaming console. As the company cut the prices of Xbox in Japan to compete with Nintendo and Sony, it is now introducing a new Xbox 360 console that delivers games and content to everyone in the family for $279.99 (U.S. estimated retail price).

The Xbox 360 Arcade console is totally dedicated to wholesome family entertainment as it 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.

As the competition from the rival companies increase, Microsoft is looking to Xbox 360 Arcade to a wider range of audience which includes the whole family. Also, the customer will get Microsoft’s catalog of high- and standard-definition family fun content that is available on demand directly in to his living room. This means the games will now include your favorite characters like Bugs Bunny and Daffy Duck from Warner Bros., which will be delivering the first ever “Looney Tunes” cartoons for download on Xbox 360. Also, Microsoft’s popular online gaming and entertainment service, with the inclusion of “Blue’s Clues,” “The Backyardigans” and “iCarly.” “SpongeBob SquarePants Underpants Slam” (THQ Inc.) and “SHREK-N-ROLL” (Activision) games will be available exclusively on Xbox LIVE Arcade. In addition to this, Nickelodeon is adding three new shows to its already large library of more than 300 episodes of TV shows on Xbox LIVE.

Jeff Bell, corporate vice president of global marketing, Interactive Entertainment Business at Microsoft, said in a press release, “As families gather together this holiday, it’s the perfect time to launch a new low-priced, high-value Xbox 360 that plays games, TV shows and music for everyone to enjoy. In addition to offering an incredible all-in-one package for families to get right into the fun, the Xbox 360 Arcade system features the industry-leading Family Settings, which allow parents to control what their kids are watching and playing — and we know how important that control is to families around the world.”

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Raju Shanbhag is a contributing editor for TMCnet. To see more of his articles, please visit his columnist page.