Do you know the part numbers of both transformers ?
It MIGHT be a case of re tapping the transformer - but a word of warning - do do it YET - if it is a domestic game - you can't do anything except use a better step down.

You mean USA domestic right Nino?

Is it possible to get a power supply that accepts 240v and outputs the correct voltages to the system or is this why a stepdown unit is used in the first place.
I just figure it would be a lot neater inside the cabinet without using a stepdown as well.

No you wont get one that outputs the correct voltages that's why the stepdown is being used.
You can mount the stepdown inside the cabinet, just plug the original cord into the stepdown and hang the stepdown cord out of the machine where the original cord normally goes.

I think other members have used this one:

http://www.ebay.com.au/itm/140922203823?_trksid=p2055119.m1438.l2649&ssPageName=STRK%3AMEBIDX%3AIT