Playing new console games on a 360 = bad business decision.
Anways, $299.99 for 360 with say 80GB HDD, $399.99 with 200GB HD, & $499.99 with 320GB HDD & Blu-Ray Drive would be a nice SKU list. As far as power, it should be able to easily produce Gears of War 2 & Killzone 2 games graphics wise. Controller wise, Microsoft needs to re-do the D-Pad on the 360 and it will be the perfect game controller for hardcore, but then they could also include a Wii-Mote style controller for alternate play, and that would please the Hardcore & Casual players.