Check the original link.

This is NOT based on the picture - this is based on someone BUYING the Arcade SKU, taking it home - and discovering that it came with 5 demos - rather than 5 full games.

I'll wait until the official announcement before confirming, but I'm almost certain that it ONLY includes demos - no full games. (still wouldn't bother me that much, but its a bit cheap and sucky IMO...). 

It still needs a harddrive. No one is going to buy it

I really hate Microsoft greedy decisions...

I understand they're trying to recover the cost of the original xbox and the RRoD shanigans but seriously thats just balls.

Who wants to wager that the companies who made the five demos actually had to pay Microsoft to place their demos on that disc??

@Space20man

No the Xbox 360 doesn't need a harddrive.

Just like how the 40GB doesn't go BC, the 360 Core doesn't. But really whats a plus for the 360 Core in general it has a way bigger libaray than the PS3 40GB to satsify the costumer. So Core wins in this situation.

@gebx

Funny thing is let the PS3 owners say that the 40GB will sale even without BC and 360 owners can now say the 360 will sell regardless if they are 5 demos or not. The only advantage the 360 has over the 40GB is that if people decide they want to spend $400 on a PS3 then they are missing out on the Elite that comes with everything including a huge HDD that is 120GB. So the Elite beats that package to the punch. And that the 360 has a massive libaray over the PS3 this year.

This is just speculation, but I don't think people buying the PS3 right now are doing so because it currently has a terrific library of must-buy games.

The 40GB isn't anywhere close to crippled to what Microsoft did to their own games by not having am HDD standard. The 40GB might not have BC right now, but atleast devs can trust that the PS3 has an HDD to store some data on to boost loading speeds. 

Anyways, why was GT banned? I haven't seen any posts that are that fanboyish as of late that deserved a ban.  

Whats the general point in calling this an "Arcade console" when its just demos? I dont walk into an arcade and play just demos.

.....Because the disk comes with 5 full arcade titles and 5 game demos?

To those that misunderstand the xbox 360 hard drive: It is simple:

To have backward compatibility on the 360, you MUST have a hard drive because emulators are downloaded. If you are just going to play games on it and not use all the interactive content, the arcade with a memory card will suffice and a hard drive is not a must.

With Sony saying BC is now a luxury, it exonerates the core *to some degree* since that is one of the big reasons to have the hard drive -- that and demos, of course. XBLA is fun, too, and will work fine with memory cards because the game size limit is 50 megabytes...