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This what I get out of these 'leaks'

There is not going to be 4 skus; they are going to have 3:

A. Arcade w/ 20Gb. (This way 3rd parties can start to require an HDD.) ~$229
B. Pro w/ 60Gb. ~299
C. Elite w/ 120Gb. ~$369

*All other features remain the same*

They will no longer offer the 20Gb as a seperate add-on since it will from now on be bundled in the Arcade model. Instead you can upgrade to the 60 or 120Gb HDD's for $99 and $149, respectively.

Personally, I think this is a good move. Puts a good basic 360 below the Wii that has all of the benefits of a 360 right from the beginning. Allows for easier multiplatform game creation for devs as the PS360 will now definitely have HDD's. Also, keeps them decently below the PS3's prices to make up for the lack of a Bluray player.

I don't think this will force Nintendo to drop its prices this year. Maybe more colors though. I do think Sony may do a $30 to $50 price drop though. I'm betting on $30 to ensure they are still profitable. They may wait to see the actual affect though as the 360 price drops in EU did nothing to Sony or Nintendo's sales.