He is right about Sony, as my local Fred already have trouble restocking 80gb unit. They only seems to get in one of those at a time.
As for Microsoft prediction, there was rumbling at E3 about drop in HD price so may be this was part of it. I see MU is down to $29.99 ... so may be 60GB at 59.99? and 120gb at $129? I see that price at Best Buy, and they usually do that sometimes to prevent later price match when price do drop. The 350 is only for limited Elite bundle special. I foresee a Forza Elite bundle and may be Halo Reach next year?
In ideal world I would love if the Arcade became the pro and we get rid of HD-less sku altogether.








