Yes and No.
I think the price drop of the elite was pretty big.
However, I can say yes in a way because a $250 XBox with Hard Drive might push some people to buy a 360 rather then $300. But I think the holiday bundle and Dell.com deals ($270 for an elite shipped with the holiday bundled games) really add to the big No.
However if you look into accessorie sales for the 360 I think It's apparent that selling a Arcade for $199 is not a bad idea. MS basically has people pay $100ish or more down the road for a hard drive and gets away with it. In return they get some nice profit out of that.
Unless they say Natal for less then what it costs to make I think MS is gonna be swimming in profit till the 720 is out, unless they do something drastic like drop the Arcade to $100.
It's just that simple.
