Microsoft has released a new Xbox 360 console–dubbed The Arcade–which is aimed squarely at the family market. The reworked, low-end version of the console will have a price tag of 199.99-pounds and will go on sale in the UK from Friday 26 October.

The move will be seen as an attempt to close the gap on Nintendo’s Wii console which has been a big hit with families. Microsoft is also releasing two games aimed at younger players, including one based on the Shrek movies.