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Didn't they announce the 360s about 17 minutes before it released?  If that's the case, people probably didn't have much time to come up with the $300 it takes to buy the console.  Plus, it wasn't very close to the holidays and it didn't have much of a price drop at all.

Microsoft probably should've built the hype for the new 360 but in the end, it doesn't really make much of a difference.  The 360s will be the version to get when Kinect launches.  It'll do fine.  Now let me ask this:  Was it better for Microsoft to ADD features to the console and remain at the same price or should they have followed Sony's strategy and cut a few non essential features , added a larger HDD, and went for a much lower price (or is the Arcade already filling that niche?)