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I think that multiple SKU's make more sense for MS/Sony than for Ninty b/c they are at a high-enough price point to take advantage of somebody that wants their console w/out as many bells and whistles. Keep in mind that the analysts have been raving about the 40g PS3 and saying over and over that this has been a great thing for sony. I would extend the same benefits over to MS for their multiple SKU strategy.