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Peter Moore recently stated that MS could not wait to kill the original xbox. They felt they could not compete on price with Sony because of the cost of the hard drive. From a marketing perspecitve the Arcade is the perfect sku, and it may be the reason MS is able to secure second place this generation. I would like to see the percentage of sales across the 360 sku's. I think the Arcade probably accounts for 60 - 70% of the recent sales increase. I think the next generation systems will offer sku's without storage as well.



Thanks for the input, Jeff.