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Statix said:
Well, you also must take into consideration that the 360 is selling at the most dirt-cheap, value-price point ever... yet that still hasn't helped it increase its sales over last year (or bring it up over its competitors). What that really indicates is that hardware sales are slowing down.

Increased software sales are just a result of the cumulative install base growing. After all, you don't expect it to shrink, do you?

Really last year at this time the Xbox 360 Arcade sold for $199 and came with a game.  This year the Xbox 360 Arcade sells for $199 and doesnt come with a game.

Really last year the Xbox 360 with a HDD sold for $299 and came with 2 games and a HD video cable.  This yeat the Xbox 360 with a HDD sells for $299 comes with 2 games and that is it.  Last year the $299 model had a 60GB HDD and this year is is 120GB which is because 60GB HDD now cost more to purchase than a 120GB HDD.

 



Its libraries that sell systems not a single game.