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Stever89 said:
Interesting read. I think the problem that the Arcade faces is that most 360 buyers are of a more traditional sense. In other words, they're mostly hardcore, so they sort of like having the DLC, dislike memory cards, need the wireless controllers (or does the arcade come with wireless ones now?), etc. So the upgrade to pro is absolutely necessary for them. So the real problem is that the 360 doesn't attract enough mainstream users who would like the cheaper price, and wouldn't mind not getting a HDD and probably don't care about online as much, so they don't care about DLC. So Microsoft's doing the right thing by having a cheaper SKU, but they're not attracting the right users to justify it.

That is a great point which is why the arcade has such low sales but sales noneless.  It is aimed at the casuals and it just looks good on paper.  You seen the PS3 commercials where they says it starts at $399 though the hardcore would probably get the 80 gig at $499 since they want the extra space and play ps2 games etc (this is just an example).  It looks nice on flyers and tv whe you say starting at such and such.