Case 2 for me.
Why not case 1 ?
Because if Arcade gets a HDD then ... it is not anymore an Arcade !!!!
Also, since Arcade is considered at the low end model (well it is in a way), if you are going to stop it then you also leave awat the name of the sku to keep the "PRO" name that is largely more prestigious
Since, it seems, Arcade name is going to stay then ... Arcade will not get HDD
Also, 2 others point to keep arcade/elite over pro :
- Elite gets price cut : same offer but better pricing, it may attract some consumer without making MS lose too much money
- keep the offer diversity : elite big HDD for elite gamer, arcade, no HDD, for casual
at the end, u can supress Elite OR Pro BUT you have to keep ARCADE
- Arcade is not expensive to purchase but it is also less expensive to make because ... NO HDD
there is not way MS will stop making the less expensive model !!
Time to Work !







