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I'm honestly not sure about this one myself. It definitely would've gotten off to a faster start with a lower price point, and having a regular CPU would likely have meant better multiplat performance, thus potentially robbing 360 of the "most games look and run better on our box" card.

Then again, I think a lot of folks who balked at the initial cost likely ended up getting one further down the road anyway once it dropped to $300.

Blu ray playback may also have been a selling point for some folks, possibly.