I mean when you think about it the idea makes sense.

At the moment you have PS3 and Elite at same price.

For value the PS3 has more going for it.

Unless you want to play certain games of course.

So you are highlighting your shortcomings.

If they concentrated on the arcade and 60 gig they would still be selling at a lower price.

As well as that they could offer the 60 gig in various colours to give it variety.

The 60 gig offers loads of space for most gamers and if they wanted to upgrade there is no problem anyway..

It would also simplify peoples options going out to buy a 360.

I mean with 3 or 4 skus on the market it makes it kinda messy.

Does anybody agree or am I missing something I mean I am sure MS know what they are doing.

No its a great option.

The difference in cost between a 60GB and 120GB HDD is negligible. If anything MS should drop the Arcade and go with a single SKU with a HDD.

@ darc.
Prior to price cut 60 was selling for 230 Euro in my local Tesco with a game bundled in.
So I would have to differ with you on that.
I think the arcade is a good entry one.

Yeah they should drop the Arcade there losing way to much money on it.

They should drop the ARCADE and The Elite

I agree with the idea that the Pro at $250 is the best way to go, but raising that price of entry is a tough ask of them

How much does the arcade cost to make?

Also dropping the pro and making the elite 299 gives consumers the perception of a huge 100 dollar price drop. Just like the WalMart ad states xbox 360 elite 299 was 399.

I don't think you get what I'm saying here. Assuming MS drops an SKU, giving what they've began to offer on Live. Dropping SKU with largest HDD would make little business since. Quite simply, they are offering the Elite at the Pro's price because the 120GB HDD is more cost effective at this point. If you want to buy a HDD at this point a 60GB is likely to cost you more than a 120GB.

I'm pretty sure they no longer make the 60GB HDD so Microsoft pretty much was forced to drop the pro model. Just like they no longer make the 20, 40, 60 and 80GB HDD for earlier PS3 models. At this point the 120GB HDD is probably cheaper to make then the 60GB HDD when it first launched. Also with a bigger HDD Microsoft will make more money in the long run because owners have more space to buy stuff from the market place without worrying about HDD space. I'm pretty sure towards the end of the 360's life their will be a even bigger HDD since more and more of the revenue will come from the online marketplace.