Doesn't anyone know that the Arcade/Core was designed NOT to go on the intenet, hence why it doesn't feature a HDD, or other net-friendly components?
That's the whole point of the Arcade/Core. MS knew there were a select number of prospective X360 owners that didn't *need* the extra $100 Hard Drive, and other components on launch day, and further.
Arcades/Cores are alot cheaper for MS to produce too, if you didn't know. Those stupid 20GB HDDs are not easy/cheap to produce, and they have a minimum price to produce, merely from components (which is why I don't understand why MS hasn't upped the 20gb to a 40 or 60gb yet).
I STILL remember the impact the Core had on the X360 on Launch day. I knew on the net it was dubbed 'the 'tard pack' - but when inline with about 40 people on 11/22/05, there were *gasp* people that didn't buy the Premium first! . About 4-5 people, mainly moms, had the chance to buy the Prem, but instead chose to buy the Core for whatever reasons.
And the fact is, if all your doing is casual offline gaming, the Arcade is going to be every bit as good as the Premium.
The 3 tiers work like this:
Arcade: Entirely offline, casual gameplay with no DLC
Premium: Some online, hardcore gameplay with some DLC
Elite: Lots of online, hardcore gameplay, with massive DLC
See, weather you know it or not, the Premium is a tard pack too - have you ever seen the DLC space requirements for some games? I have *maybe* 5gb left on a good day for downloads - even without demos - due to the amount of DLC I have. Shivering Isles was 1gb alone. Movies are insanely large, Rockband DLC is usually around 30mb a song (which can fill up very, very fast), and then you have free DLC for Ace Combat 6, Crackdown, and many other games - if you own any of those games, it can fill up the 20gb fast.
I don't mind the various SKUs - and who wouldn't? MS clearly states what one is good for what. If your confused, its your own fault: no HDD, 20gb HDD, 120gb HDD. Your choice.
And for poor Core sales justification(s): in the beginning, it was what MS put it at due to supply constraints (25-30%), then lowere to 10%. However, when the Arcade launched, it was 20% or more....Enough to cause about 1 month of supply constraints. The elite is the same way - it's not 20% of the market...It's lower. The different SKUs are meant to warrant sales to consumers that wouldn't buy the X360 at <insert price of Premium> or need a bigger HDD.