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This is exactly what they did before the 60GB Pro became the norm.  They need to clear the old product before they can reduce the price of the new product, yet they know some people would want the new product and it is cheaper to produce.

So new at $299
Elite at $249
Arcade at $149

After Elite and Arcade gone they can introduce a new Arcade SKU and new SKUs with Kinect in the box.  Kinect will never be part of the unit.  The device needs to be separate an unobtrusive under the TV.



Its libraries that sell systems not a single game.