Because 99% of people assume bigger = more expensive.

Wait how is it gonna negate the boost? People go and buy the 500 dollar version and if they want the 600 with the pack in.

The boost will still be there cause of the price drop and they'll cover their asses so they don't lose as much money by having the 600 dollar out there. 

Also what do you think is gonna interest the average consumer more, HDMI port and more gb or a pack in game? In addition I think the pack in game is a better value cause frankly the 100 gb is not a value at all to me. 

buy the cheaper version. get motorstorm, save 40 bucks.

good start for the price drop, but imo it isn't going to make a huge difference in the current sales market for consoles, MS can drop their price anytime as well but both are gonna get smoked by the Wii

edit: just checked newegg.com

price difference between a 60gig and 80 gig hdd is 10 dollars.(western digital "scorpio" drives. 49.99 for 60 and 59.99 for 80... 74.99 for 120 gig

SO even all the other equipment stayed the same in the console....sony's going to make ATLEAST 50 dollars per unit "more" (ie lose less money)by charging that extra 100 dollars 

Because the new 80 gb versions have lower production costs with all that they changed with emulation and stuff.

 I wonder when they would ever make a profit if they did that with what they're already spending on top of the recent warranty (and repair reimbursement) costs.

The price difference between 60/80gb drives is miniscule. The 80gb version, I'm almost positive, will have the newer motherboard that has removed the EE chip, thus less parts, cheaper to produce.

My theory is ... it costs more because they want to get rid of the 60gb stock. Hell, even the 60gb version in EU is cheaper than the US version because of the hardware difference. So, if they get rid of the 60gb stock, then they can do one of two things:

1) Discontinue the 60gb. This way, they can eliminate the pack-in for the 80gb and offer that at $499.

or

2) Introduce the 60gb EE-less version to the US at $499 and keep the 2-SKU package.

But, I think the price difference between the 60gb and 80gb is ridiculous. The pack-in game and 20gb doesn't justify $100 extra dollars, IMO. 

It negates some of the impact because there's still a $600 model. It's not anywhere close to the casual range yet so it's still only gonna get bought mostly by hardcores who are still always going to go after the more expensive model and see it as $600.

Also Motorstorm definitely doesn't have a wide appeal so forcing it into a bundle screws up the value proposition for a lot of people, too.

 So somehow the people are not gonna notice the 500 dollar version?

 Bingo. You said it much better than me :)