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Honestly, I don't think the HDMI is very important. Someone remind me what the rule is for watching HD movies without HDMI. Does it go down to a lower resolution? And that's note even implemented yet, right? Anyway, the 360 already has a VGA connection which to me is more convenient because you can connect it directly to a monitor. I had to buy an adapter. Also, VGA gives you the same resolutions that HDMI does, and higher. The signal is virtually the same quality. Digital versus analog is not really an issue there. VGA has been used for years with monitors that output at much higher than 1080p (that's just 1920x1080 in monitor terms, btw, and I've run 1600x1200 for years). Anyway, the cheap cable and HD is worth the $80 (unless you don't get a notebook drive which would be about $70 for the same value), but what about all the people that already have the 360? Now, 9 million+ will have to pay a ridiculous $180 to upgrade to 120GB, whereas PS3 owners need just $50-80. All the owners of the PS3s just saved another $100-130 on current 360 owners. Using the low estimate of $100 (both would have to buy cables), that evens out the price for the premium 360 versus ps3 core, with the ps3 having more features and an HDMI port already. That's not a great choice for current owners. At least current 360 core owners didn't already pay for a HD and can upgrade. But for $180 they don't have a headset, ethernet cable, or wireless controller included. Also, developers will still be hesitant to provide options for HD support since the Core version without an included HD is still out there. Ninja Gaiden Sigma for the PS3 will have an option to entirely install the game to the HD (as per PSM April issue).