Im thinking new model.
let just wait till GDC I guess.
when does it start anyway?

 Perhaps there was some massive screw up during production and they are picking up the pieces, relying on warehouse stock to sell while they clean up.

Legend whats your excuse? They really have a shortage? Miraculously 3 years after launch.... without that high of a demand..... with only having to concentrate on one region.... I call BS on this shortage.

Username they would gladly admit to that to get the blame off their shoulders. Right now they look like idiots. I think they would come up with any excuse to shift it.

which they wouldn't as it makes NO business sense 

 It does make good business sense because how else are they gonna get rid of their huge stock? What doesn't make good business sense is MS buying back stock. Even if they just bought back 100,000 Halo Editions at $300 each, that's a $30 million buyback. And we all know there's a lot more Halo editions than that to buyback and they cost more than $300. After the buy-back, then what's MS gonna do? Bury the systems in the desert? I guess they could just re-skin the systems as Premium models, but that would still be a very costly measure. 

Wow ... came back to the PC after a Valentine's dinner with wifey to see the PS trolls rabbid. Dang - do you all break for lunch? Meh ... it's the usual suspects ... cue Crazzyman, Quiet Scquall and Mike B at any moment now ...

I know for a fact that the only console stuffed into the retail markets in the U.S. are the 40gb PS3s. And guess what? A few folks are buying them, but folks want some PS that can play their old PS2 games.

A recent walk this evening through Target revealed no Wiis - even had a sign up basically stating 'Please, don't ask' - no 360s whatsoever and 4 40gb PS3s. MS is going to roll out lower priced, more reliable models timed with a few announcements at GDC.

The PS3 shaves a few units off the 360's 7M lead and the PS3ots are claiming victory. I liken that to Brownback stating he's got the most delegates ... it's funny reading and watching the uninformed defend Sony. Thanks for a good-night laugh to go along with my night cap ...

@pooper scooper really WTFs your problem dude u seem to be getting a little too emotional in your responses. Last i checked this was an opinion piece, u know ....random speculation. It almost seems like MS has to outright fail or the company implode for to you be happy.

Two words: Power Down

OT: It's hard to say, but i've been thinking for a while  now that they are probably making some alterations to the hardware. not so much a smaller unit but smaller components [CPU 45nm GPU 65nm/45nm?] maybe.

Better question: Is Microsoft ever NOT up to something?

Krusnik I am not emotional at all. And I don't say outright I want a company to fail. I'm just saying the shortages are BS. They don't have a high enough demand, they don't have to concentrate on any market other than N. America, they haven't sold an extreme amount compared to last year(so they had to be projecting close to these numbers).

Ok people listen up. From a retail perspective you only sell consoles to push games. The different SKU's are treated as SEPERATE products which is why back when the core was around you hardly ever saw it as it didn't sell well. The premiums and elites DO sell well, so it makes NO SENSE WHATSOEVER to stop buying a product you know you can sell. No retailer is stupid enough to think that if someone comes in looking for the premium he'll buy a halo if thats all there is. Instead, he will go on to the next shop and keep looking.

To all the people that think MS is lying. WAKE UP AND LISTEN!!! Gamers and retailers were reporting shortages WEEKS before MS did.