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Why do people keep bringing up 20GB HDDs to be bundled with the low tier XBox360? It's never going to happen as a 20GB HDD would, in all likelyhood, end up costing more than an 80GB or even 120GB HDD. If anything, I could see Microsoft tossing in a 16GB flash drive with the Arcade model.

As for Natal, I'm guessing it'll be around $100, maybe more. This isn't something they can milk for people who want to play with four players, it's a one-shot deal. So I'd expect them to try to make a decent amount of profit with each one sold. If it's a success, then huge profits for Microsoft. If it's a flop, then at least they managed to wring out some money from it's failure.