Core becoming a Arcade Console?

Recently there have been leaked shots of three Xbox 360 consoles in a ad, the Elite, Premium and Core. But the Core said to be a Arcade console has memory cards and some free xbox arcade games. Some retailers have even been taking the cores off the shelves cause it hasn't sell. And people were confused on how the core is still there, but i guess this is Microsoft's way of changing the core. And it will become a causal console for those not so hardcore gamers.

Source from Xbox360fanboy