When Larry Hryb (Major Nelson) showed off XB1X in person he said 1TB but didn't seem entirely sure. He did say there would only be one sku for now and made sure to mention external storage shortly after.

i was thinking the exact same thing, reactions from them throughout both occured before those or the rest of the audience and significantly more exaggerated,

the cheers were not in line with what was being shown

A reasonable price for that nice piece of hardware and huge improvement over X1, I'll pick it up day one.

Wish it would have been $399 it would have sold much more units. Still, it should be a no-brainer for active gamers who want the best multiplat games and prefer Xbox exclusives.

The price isn't too high, but price was never the thing that would make it fail in the first place.

The only thing I hate about this is that a 299 Price for the PS4Pro is now impossible. The scorpio had one year before it release, how was 399 not possible M$???

Im buying it for the portability (my pc has none lol) and the uhd player and stuff if I already owned an xbox one S I would have skipped this console.

Its a good price for people who don't own an xbox its a pretty bad price for people who own an xbox in my opinion.

The problem is they didn't convince many people who don't have an xbox to buy one with their showing last night unless you really want to play the third party games in the best quality on a console and that isn't a lot of people.

Anyway it was expected.

Because they want to make money. Selling it far under value is losing them money. Seems like a sensible decision. It's not like they have to gain anything anyway so why not just coast along?

I am pretty sure the cooling sollution and the size have caused this thing to be more premium then many hoped. It does look a lot sexier/better build overal then the ps4 pro in my eyes but that comes at a cost. If they went a different route and designed it more like the original xbox one they could have sliced a lot from that price!

I remember previous E3's of Xbox having paid ppl in the audience to cheer and build excitement to make it seem like it was better than it was. If I can find a link I'll post it. 

Edit: Found it. https://youtu.be/_1Z_2MrwlSk

http://m.neogaf.com/showthread.php?t=560557

Even if $399 was possible, that's not really XB's style. After all the backlash on Kinect and $499, they still ran with that for long enough to grab the early adopters cash, then made changes. It would be very simple for them to do the same thing this time. All they would have to say is that sales weren't meeting expectations after the first few months, so we're dropping the price. Meanwhile they made $499 off of all the early adopters.

The most likely scenario is that it's really worth close to $499. The tech inside sounds old and out of date, but major engineering has gone into the console to make it as capable as it is. Plus hardware like vapour chambers and 4k BD players are not cheap. You also have to take into account, the more consoles they can sell, the cheaper each unit is. XB1X may only sell 1/5 of XB1S, so the cost can't be as low per unit. I think XB is being much more honest this time around.