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No no no. PS3 needs HDD.

A X360 Arcade with no HDD was a terrible move by MS. People who are not into games buy the X360 Arcade. GTA IV suffered due to the HDD X360.

I see no future in the Arcade X360 which only accounts for 10% of X360 console sales.

Larger PS3 HDDs are needed and lots of people replace their 20GB, 40GB, 60GB and 80GB HDDs with HDDs up to 320GBs.