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Forums - Microsoft - Xbox 360 marketing when Natal/Wave releases this fall

thx1139 said:
People will purchase the HDD for the DLC.

The important thing is to minimize confusion for the sales process. In my opinion MS needs the $149 price point this fall. Really can only do that with the equivalent of the arcade model. 4 SKUs will be just to confusing and difficult for retailers.

$149 Arcade equivalent
$299 with Natal
$249 Elite equivalent
$399 Elite with Natal

That is just to many SKUs.

Maybe they up the size to 16GB flash drive. I really do believe that MS introduced the ability to save to a USB device for a reason. They werent really under any pressure to do so.

Actually they were in a legal dispute with Datel over third party memory devices before they released that update.  By allowing any USB memory stick to be used it was a good argument to use against Datel providing huge cheap storge devices without ny licensing.  I suspect the actual reason for the update is for several reasons, they can provide USB sticks cheaper than memory cards in the future (cheaper to manufacture), they can remove the memory card slot in future 360 form factors, it was a good bargaining tool in their law suit wih Datel.  There was definately pressure for them to do this, even from some consumers who didn't want to spend money on propiertary memory devices.