http://arstechnica.com/news.ars/post/20081014-microsoft-undercuts-wii-value-with-20-xbox-360-hdd-promo.html

As we head into the holiday season, Nintendo, Sony, and Microsoft will try every trick in the book in order to maximize sales. One of the best weapons Microsoft has is its price point; after the September price drop, the least expensive 360 model is selling for $200, $50 less than even the Wii. While the Arcade unit doesn't come with a hard drive, Microsoft is seeking to fix that: the company has launched a promotion giving Arcade users the choice of a free 512MB memory card or a $20 refurbished 20GB hard drive. 

Gamers need only to go an official Microsoft page and enter their serial number and console ID to see if they qualify; it appears that only Core or Arcade units can take advantage of this promotion. This is Microsoft's answer to their promise of a "storage solution" in order to allow all gamers to take advantage of the new UI and Avatar functionality launching on November 19. That update will require 128MB of storage space, which would leave precious little space on the Arcade's included 256MB stick.

  This move catapults the Arcade model from the gimped choice for hardcore gamers to the most affordable option for any gamer: $220 gets you the system, a 20GB hard drive, the Arcade games, and the 256MB memory card. Newer bundles will also include a copy of Sega Superstars Tennis and a Netflix trial. That's a hard deal to refuse, and absolutely creams Nintendo in the value department. Right now GameStop is selling its refurbished 20GB drives for $59.99, and the cheapest model that comes with a hard drive is the 360 Pro that retails for $299.99 and comes with a 60GB hard drive. This new deal makes the Arcade unit the best value for most gamers, one that could possibility get a batch of fence-sitters to make a choice.

If gamers sign up for this promotion in droves, and 360s without hard drives become more of an exception, it could give developers and publishers the confidence to use the hard drive more heavily. (The new firmware will allow gamers to load the entire game into the hard drive to cut down on loading times, something that Arcade owners will now be able to enjoy along with their Pro and Elite friends.) While you do have to fill out a form and wait for the drive to be mailed, it's clear that Microsoft has patched a major hole in its product line, and a full-featured Xbox 360 for $220 is an incredible deal.

its refurbished.

old news but still good news.

Some stupid guys at Ars Technica doesn't understand what value mean, and mix it with price, obviously.
The value I found in Ars Technica has gone way down since they started talking about consoles of this generation.

heh, Ookaze you are absolutely right. As do many others who don't get the difference. However $220 is still a little more than I am willing to pay. It is coming a lot closer. I think maybe the next price cut with the same promotional deal and I am good on the value. Though I need the cash at the time. Xmas indead. Most of my money goes to the kids :)

We have the big thread about it here:

http://vgchartz.com/forum/thread.php?start=0&id=45190

yeah Microsoft at least trying...

I still find it strange that anyone finds value in the Wii in the first place. Other than when my 5 year old nephew comes to visit, it sits like a paper weight collecting dust.

If we are going to have discussion on value lets at least keep it to the machines that actually provide it.

The Wii is great value to me, and if this promotion makes it to my shores, it'll be hard for me to resist a 360 as well.

@scat398: That's your opinion and obviously it doesn't apply to everyone or the Wii wouldn't be selling as it is right now.

If my Wii would disappear tomorrow, I'd gladly pay full price for a new one. I'd even get one if it was at the same price point than the PS3.