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The console is $199, if putting the 256MB of memory internally saved money so they could drop the price, good.

And important point here, THE INTERNAL MEMORY WILL NOT CAUSE ANY EXTRA HARDWARE PROBLEMS. There is already internal memory in the existing models. They just upgraded it from 32MB to 256MB. The old 32MB chips can no longer hold the OS because NXE is bigger than 32MB (it's around 80MB I think). So instead of removing the chip from the motherboard they just increased it's size and got rid of the MU. Smart.