I have no issue with Sony releasing multiple skews. Offering choice to the consumer - especially at a lower price point - is always a good idea, and a solid way to boost sales.
But when you start doing it by releasing crippled versions of your console - I get worried. Especially in the first year of release of a "10-year" life cycle.
And even more so, when what you are dropping is (enhanced!) software support for the most successful console in history. Dropping GC or XBOX support would be bad - but only 20%-30% as bad as dropping PS2 support.
The 360 "Core" model can be extended. HDMI/no-HDMI is a valid option IMO - although in the future, HDMI is more than likely to become the standard.
...
Imagine if Ninty would release a smaller, cheaper version of the Wii - without "channel" support. Its still a Wii, still plays Wii games - its cheaper and more accessible - but its just not as good.
Gesta Non Verba
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