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Kwaad said: There's a good chance they will scrap the cheap one, and leave only the 60gb, and sell it for 500 this holiday. (if their not selling well)
That makes sense. Cutting down the number of models of a product can streamline the manufacturing process, and even allow increased production of the remaining model. I would still hesitate to call either unit cheap, but a 17% or so reduction in price for the top model is a big step.