If the evidence we have been given is reliable, then we now know the Pro is set to be discontinued. So what will MS do now? I see two different things that could happen:

1. Arcade gets HDD. The Arcade, remaining at the same price as is, will finally get a hard drive included in the bundle. This would technically be as if MS discontinued the Arcade but dropped the price of the Pro.

2. Elite gets price cut. To fill the vacuum that the Pro used to fill, the Elite will get a price cut to match the price of the Pro. This will have two, differentiated SKUs for the 360, the cheaper arcade without a Hard Drive and a more expensive Elite with a large, 120 GB hard drive.

Any opinions? Other possible strategies?

Both of them are possible...But I like the option 1 better. Bring a HDD to the arcade.

I think they will stick with 2 SKUs

Elite will be cut to the Pro's price.

That is all.

There has to be some sort of configuration on the arcade/elite or a price cut.

both of my options technically aren't price cuts, so I wonder if it would be enough to counter what has been widely rumored to be the coming of the PS3 slim.

Case 2 for me.

Why not case 1 ?

Because if Arcade gets a HDD then ... it is not anymore an Arcade !!!!
Also, since Arcade is considered at the low end model (well it is in a way), if you are going to stop it then you also leave awat the name of the sku to keep the "PRO" name that is largely more prestigious

Since, it seems, Arcade name is going to stay then ... Arcade will not get HDD

Also, 2 others point to keep arcade/elite over pro :

- Elite gets price cut : same offer but better pricing, it may attract some consumer without making MS lose too much money

- keep the offer diversity : elite big HDD for elite gamer, arcade, no HDD, for casual
at the end, u can supress Elite OR Pro BUT you have to keep ARCADE

- Arcade is not expensive to purchase but it is also less expensive to make because ... NO HDD
there is not way MS will stop making the less expensive model !!

bodhi14,

well, this new pricing is clearly no sufficient to counter the 300$ PS3 slim

but, in a way, MS can still wait a little to see how the Slim behave and counter a bit later during the holidays (well I hope they will not ;)

^ when exactly is this discontinuation coming into effect? or has it already started (no more Pros being made, letting stock run out)

I think the discontinuation of the pro is most likely to do with the 60 gb drives no longer being mass produced resulting in them being more expensive than their 120gb counterparts.

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I expect the slim ps3 to launch at 120gb or greater for the same reasoning. I doubt ms would want to give up on the lucrative arcade hard drive upgrade.

299$ Elite in response to 299$ ps3 price cut. If it`s 349$ ps3,that`s even better for MS.

149$ Arcade will be epic. They already doubled the memory inside the Arcade to 512mb from 256mb.

MS is very smart...they will have less confusion,the lowest price possible,and a competitiv high end product that psihologically mach the lowest in price competitor...the possible 299$ ps3.

The casual player will see this...and history repeats itself. Half the price of the ps3 again.