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@Grampy - Thanks for the link.  The linked article suggested that the $199 Arcade was a clearance sale and the Arcade would be discontinued.  This would leave MS with a $299 60 gig and a $399 Elite sku.  I think this is an accurate assessment.

Microsoft will be selling the Arcade at a loss if the $199 price is true.  The problem with the mythical $199 price for casual gamers is you need to be profitable on the console sale.  The consumer that the $199 price attracts will not pay for Xbox Live, they will not buy many software titles, and they will not buy a lot of accesories.

 

 



Thanks for the input, Jeff.