So no one will buy the arcade sku just to play games on?  Hmm.

Of course people will.

But has MS not said that the 199 price point is the "mainstream" price?

Is Netflix, and the Movie and TV show rentals not for the mainstream?

MS is pushing Arcade to the mainstream, but leaving out a huge portion of work they did to get the mainstream, which was the netflix deal, and the movies and shows.

The arcade is good for the cheap gamer, but for the mainstream, which MS believes the price is for, it's kind of weird that your stuff of the mainstream can't be done without bringing the price up to the more expensive models.

Has DD taken off with the mainstream?

Well, looking at the effort MS is doing with XBL and Netflix, they'd want you to believe yes. 

This is not about DD going mainstream, but the fact that MS is pushing for it to go mainstream.  No?

I'm not exactly sure how smart the general consumer is , but one thing is certain alot of people will get suckered into a package which isn't neccaserily the best one for them , that's the probem with multiple SKU strategies.

No it is about what the mainstream wants.

By the time the "mainstream" audience realizes that they need a hard drive to do many of the things that they want, the purchase is already going to be done, and they are going to go into a store looking for the "hdd" add on. This will cause them to pay outrageous prices for the boxed hard drives, and in turn put more money into Microsofts pockets! It's genious!! LOL

So the mainstream doesn't want Digital Downloads then?

They want to play Gears and Fable 2?

I don't see the point in the "mainstream" price if you have nothing for the mainstream.  I kinda thought that Netflix and the like were for the mainstream... 

So what does MS have for the mainstream then?  If it's not the netflix thingy or Digital Downloads?

Not just MS is pushing for downloads to go mainstream, Apple, even....hold your breath......Sony.

Quoted from article linked below:

"Sony is finally starting to realize that compressed, downloadable movies -- as opposed to physical media like high-definition Blu-ray discs -- are the way of the future."

http://www.thestandard.com/news/2008/07/01/sony-s-blu-ray-will-keep-them-winning-new-format-war

sorry fixed link.

 Perhaps they have games that the mainstream will like. At least thats what I think they are trying with the whole lips and Viva Pinata nonsense. It seems to work pretty well for the Wii.