There is talk of the new "Slim" 360 coming out with an Arcade version.  The Arcade version of the 36 has flash ram in it to be able to store system updates.  I was wondering if the new Slim 360 does feature this.  If it doesn't, then what is the future of the Arcade system?

Will we see all 360 systems coming with Hard Drives from now on?

I haven't seen anything regarding built in flash memory, but with the use of flash drives and how cheap they are, I don't think it is necessary at this point either.  If I had to take a guess, I don't think we will see a 360 sold without a hard drive from now on.  They will only have the one sku for $299 until the release of Natal.  Then they will go back to the 2 skus. One with Kinect, one without.  I expect to see them sold at $349 and $249 respectively.  All of that is purely specualtion on my part.

Not having hard drives on all their systems was a mistake for Microsoft.  I think they are going to rectify that mistake.