MSFT should have learned from sony.....adding features and keeping your price point DOES NOT equate to a price cut in consumer minds.
MSFT would be much better off dropping the price to $250 for the 120 gig and then maybe a 250gb natal bundle for $350 or something.
IF MSFT wants to treat Natal like anew console launch however, theyre going to have a rough time upping the price, so its probably going to have to stay at $299 for the bundle....and then in that sense i think theres a lot to be said for the difference in consumers minds when it comes to adding features but keeping the entry price the same.
It may not be a good decision, but if they are committed to bundling, they may just have to release the bundle at $299 but theyll have to drop an SKU to $250, imo.