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Loud_Hot_White_Box said:

It's a damn shame that a hdd-less HD console is being peddled so hard.  It limits game development for 360 and PS3 games.

 

It wouldn't matter that they are peddling it, the fact that it even exists is what is hindering it.  M$ hopes that maybe they can get people to buy the arcade and then buy the starter pack later on.