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Working in Australian IT distribution years ago, I actually met Michael Ephraim and iirc he takes a lot to get riled up. Pretty easy going guy.

As for pricing, I bought the 40Gb MGS4 pack last year for AU$748. I can pick up an 80Gb + 2 games for AU$648 now. Prices have come down but thats probably more competiton than anything.

I bought a 360 elite pack - 120Gb + 4 games in Nov for AU$548. (Traded a PS2 + 14 games for $200 off). Pro packs are now AU$388, arcades are $AU299. Gold cards cost 70-80 for full year. Don't even ask what HD costs are.

By the way check out Smarthouse few offerings previously:

XBox360 on the Skids: Retailers consider dumping it.

Microsoft Get Their Knickers In A Twist Over XBox Claims

 

These stories are just as ridiculous as the current Sony ones. Nothing but guys trying to get headlines. Nothing to see here move along.