Squilliam on 21 November 2008
The real question is what they do with the Arcade in the future! 
I can see 3 good choices.
1. Do nothing, it works why change it?
2. Put an SD card slot. You can grab a 4gb SD card for like $10, but they lose the HDD upgrades. They could do this if they intend to drop the price of the Premium but not the Arcade, otherwise it wont make sense.
3. Install a small flash HDD like Nintendo does, possibly a combination with 2. It doesn't have to be much, but 4gb would allow people to say download Live Arcade games and stream netflix which should help them sell Live content and Live Gold subscriptions.
Tease.
