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They said it doesn't that it was used as a place holder for other labels etc. Again some people complain about the lack of hardrive for the 360 but I am certain most I would say over 75% havea hardrive and best of all have an option to just buy one when they decide they need it. I wouldn't be surprise if the core was just a way to sell in other markets and to appeal to that 10-25% percent who just coudn't afford to buy the $400 version for whatever reason.