Yup this is what I see too.
It will run Windows RT too and apps.
$299.99 -- Deluxe w/3 Year Subscription to XBLA
$399.99 -- Basic Package (no HDD, small amount of flash RAM)
$499.99 -- Deluxe w/HDD (this is what most people will buy at launch)
It will have a lot of the same Nintendo TVii stuff like the Wii U does, but the 720/PS4 will be more flexible and have more features (ie: play Blu-Ray movies, play all your video content, stream content to and from your smartphone and/or tablet, etc. etc. etc.).
MS will take a $50-$60 loss/unit the first 6 months or so until mass production ramps up, not a big deal.
Destiny (Bungie) and something from Epic will be the lead launch titles. It will be backed by the biggest marketing campaign in video game history.
