Rumors of an Xbox 360 holiday bundle featuring Forza 2 and Marvel: Ultimate Alliance have proven to be true, as Microsoft just confirmed both games will be included in Xbox 360 and Xbox 360 Elite consoles for the recently reduced prices of $349.99 and $449.99, respectively. Both bundles will be available in the U.S. by the end of October.

Also rumored to be available in stores by late October is a new Xbox 360 Arcade bundle, which would carry the same price but come with additional goodies such as a 256MB memory card, a wireless controller and a five free Xbox Live Arcade games. Microsoft, however, did not comment on this Arcade bundle or if any of the 360s that come in these bundles are built upon the new Falcon motherboard and driven by the cooler-running 65-nm CPU, which will reportedly address the overheating issues that have plagued Microsoft’s console.