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I dont think you will see the Arcade go away until the Pro can be sold at $99.

As for HDD small doesnt mean cheap. The biggest reason Sony and MS changed the Pro and 40GB sku's to larger drives because the larger drives are now less expensive for them to purchase.

I expect that next year Holidays the Pro will have a HDD at 120GB and the PS3 will be at 160GB for the lowest price model. The Elite if it still exists will have like a 300GB drive.



Its libraries that sell systems not a single game.