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It makes sense. From the very beginning Sony stated they would not produce as many 20g as 60g models. If I remember correctly they stated a 80/20 split between the two. Since most people probably would not even get the 20g version the retailers would just shift thier focus on carring one model. Easier for them as well, due to limited space. Sony gets less and less orders, reduces production, eventually stops it entirely and only sells one sku. Then they will probably read the market when 360Elite launches to see if they need to put out something with a larger drive or not. Really the only reason to get the larger drive would be for movie downloads. So maybe when Sony's HOME service launches. probably a similar 120g drive or so. Then drop the price of the 60g to $500 and keep the 120g at $600.