LOL at the thought that this will be a console selling for more than $400... contract offers or not.
It will be, at most, a $400 console. Their test contract offer must have been successful, so you'll probably get it for $200 on a 2yr contract with some overpriced Live subscription.
I'm betting a base model close to $300 and super-duper model for $400. Kinect equivalent in both. Then $100/$200 on some sort of multi-year contract.
I still think MS will be more likely to follow a more cellular style system with moderate upgrades in power and new consoles every 2 or 3 years to match whatever contract model they use.







