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In my mind that's an absolute necessity. The sweet spot for 360 would be the Pro at $199 and Elite at $299. Where that puts the Arcade, if it's even still supported by that point I'm not sure.

The only holdback to that eventual march is the Wii. If the Pro is $199 and the Arcade is even less when the Wii is still $269 and outselling it, it really makes the 360 seem like the less valued machine in the public's mind. (don't take that wrong, the value proposition would be great but the perceived value of ownership would be less)