That sounds like the PSP Go Sony tried to pull on US a while ago! MS is bringing us the future I guess...
I don't think it's necessarely a bad thing, however it should be priced very aggressively, maybe 300$ because it's still weaker than the PS4 and offers only drawbacks at the same price...
MS should stop believing they offer a premium device and embrace their lower end status... price accordingly, take a hit on the hardware profits (like Sony does) and make the money back on the software sales, I think a lot more people would be willing to bite the bullet, and when the pricing makes sense people "get it" without feeling cheated... right now they are selling a fully equiped Camry for the price of an Audi S8 or something, not many people will embrace it.
