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my 2 xbox360 died on me this week (RROD).
I sent them out to be repaired (free) and will return in 3 weeks. (not 5 like i thought it would)
then, I broke down today!!!
I went and bought the Arcade sku and 120G HDD. Both cost $340 (cheaper than the ELite model)

I called few people this morning and sold the other two. ($150 each) I'm giving them two games each.

I think it's a good time to buy one now.