Exactly.
That's the crux of their entire pricing scheme.
Drive space was the key difference between the $299 Core and the $399 Premium (wireless controller/game save advantage later deleted)
It was also the key difference between the $349 Pro and the $449 Elite (HDMI port advantage later deleted).
But it will be extremely difficult to convince all but a handful percentage of consumers that a HDD, regardless of capacity should be priced in the same range as the console itself.







