There isn't a problem with releasing a 'Lite' version of a console or handheld, after all, it is still capable of the same functions, which is what we want from it. The problem is with releasing different versions of the same console, each with different capabilities.
I think the Core 360 was a mistake, it makes sense for a product range to be able to take advantage of all the features available, which the Core system is not. Not to mention the fact that this is confusing and off-putting to consumers, who don't know which features they will need or if they are needlessly buying the more expensive verion.
I also don't understand the need for the upgraded versions of consoles, the Elite and the 3 versions PS3. Upgrading for manufacturing costs is one thing but releasing so many versions of a console smacks of not knowing what your customers want. The companies should decide what is needed in the console and stick to their plan. As long as the system is capable of everything it needs to be then that is all that it needs to be, and you can do that in one package.
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