Dont think the apparent strategy is the right strategy.
Right now it looks like they will go with
Arcade at $199.99 (possible reduction of $20-$50)
Elite at $299.99.
With that I expect the HDD starter kit to upgrade to 120GB and be priced at $99.99.
This leaves a hole in the competition with the PS3. Thier isnt a 360 available with HDD that is less expensive than the PS3. Up until now MS has always had a 360 with HDD available for less than the PS3.
Thinking MS should either price the 360 with HDD at $249.99 and forget about a $300 model or change the models to the following:
Arcade $199.99 (better at $149.99)
Pro $249.99 with most cost effective drive available and thinking with the new PS3 slim having a 120GB then 120GB is the most cost effective drive.
Elite $299.99 with 320GB drive. Still has higher profit over 120GB drive model. (Newegg has 120 for $50 and 320 for $65).
At a minimum if MS is going to go with only one SKU with a HDD they should up the HDD to 320GB.
Its libraries that sell systems not a single game.
