I think the built in HD-DVD version makes sense. It was hinted to in many ways, and really its the reason Microsoft got in the gaming business. They want to stop the PS3 and Blu-ray so they can take over the living room. They will never make enough off the 360 alone to justify being in the games business. There was clearly a bigger picture to it all, and they just lost.

So I think its possible the built in HD-DVD version was possible, with new more reliable hardware, HDMI, bigger HDD.

That got shot down, so they are slowly trying to cover it up as a supply issue. Really, how else does it make sense to completely stop shipments in the first two months of the year? If they really did this just for RROD its stupid, because they just game the US,UK, and Australia to the PS3.

Crappy theory lol

What shortages? Plenty of 360's around here. Never saw any shortages over here (except Elites a few weeks ago)

Assume (for a moment) what would happen if you planned on releasing a new console in March to go along with GTA, so you stopped producing the previous console when you had enough supply to meet demand, and many of the consoles you previously produced (Halo 3 edition) were not wanted by your consumers ...

In my estimation, if Microsoft produced 1 Million Halo 3 edition XBox 360s that didn't sell they would be looking at an 8 week shortage before they could introduce their new model.

I don't think this theory is as crazy as most guys here think, it is a possible answer to the why there are arcade SKUs everywhere and no elite or pros ( or maybe 'cause no one buys the arcade ones :P )

So Squirrel, you think it's possible there is a new SKU on it's way because there are so many Halo3-editions out there (and MS wants to "force" these upon consumers and therefore supply constrained the regular Pros)?

If so, what kind of SKU do you think it would be?

I think it's probably a simply reason. Because MS overstuffed the supply channel in '06, and they had only modest sales, they had to REDUCE production throughout '07. Then with Halo/holidays all the backlog and stock were depleted and sales rose to a level above production so now they having to increase production again.

Personally, I would expect a cheaper to manufacture model (possibly a 45nm model with large portions of the active cooling components removed) with the only "improvement" being a larger hard-drive.

I see plenty of consoles in here in Canada as well.  I wouldn't say they are full of crap tho.  Microsoft needs to figure something out here and this is buying them time. They have to work twice as hard when it comes to games for casual peoples dollar as they lack the blu-ray drive compared to their competitor.

well i havent really seen any shortages where i live.... in florida....