I think the Core has the right idea. Hard drives will always remain expensive and the core allows for the Xbox360 to reduce in price quite considerably and in future I see the Core sku selling at a much higher rate as more and more people buy the cheaper version.
However, one thing MS really needs to do in order to increase sales is to stop ripping people off with regards to memory cards. If you have a core you need a memory card, so basically if the price of Core + memory card is too close to the price of a premium, it's not worth it. I can't believe it costs AU $50 for a 64MB memory card. That's just bloody ridiculous. I bought a 128GB microSD card (about the size of my fingernail) 6 months ago and it cost $15. There is no reason why the memory cards should cost this much.
If you drop the price of a memory card to $10/$15 suddenly there is a much bigger difference in price between the core and the premium. After a couple of price drops that difference looks much larger and suddenly people will be much more interested in the Core SKU.
Help! I'm stuck in a forum signature!
