Squilliam said:
Not really... |
They don't want to lose market share to the PS3 at $299.
With no mid-range 360 (60GB SKU), the playing field would be $199 Arcade or $399 Elite.
Is MS worried about losing those majority mid-range console sales? Absolutely.
$299 120GB Xbox ("elite") = problem solved. The solution in this case, was actually there before the problem, but they won't react until a reaction is necessary (lower priced PS3). But they're still going to react and that shows concern.
The only thing MS loses is the $100 premium they were charging for an extra 60GB of HDD space and an HDMI cable (which will no longer be included). From a production cost perspective, 120GB OEM HDDs cost next to nothing more than 60GB OEM HDDs. That extra storage stopped being a "premium" $100 feature well over a year ago.
