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It's about a parent's perception. This is my take:

A parent walks into a retailer to buy a console, maybe even their kid asked for a PS3. The parent sees the 360 Arcade is half the price and asks the sales person the difference. The sales person explains Blu-ray, hard-drive, 10 year lifespan, etc. The parent asks about the games. The sales person explains that they more or less have the same library, but points out that the 360 comes with kids games bundled with the console saving the parent another $60.

The parent decides to buy a 360 Arcade. The sales person sees s/he lost the upsale to the PS3, but trys again(for the kids sake) to get a better sale. The sales person explains how if the parent has or is looking to get an HDTV soon that they should get the Elite which comes with the HDMI cable, a HDD, and other extras. The parent is either sold on the elite or walks out with the cheap Arcade unit (with the 2 extra games)

Can anyone working at a retailer recount their experiences with game sales this holiday?