Nice form factor...so long as it supports multi-touch in addition to the stylus. Curious what the battery run-time looks like. I'm sure there well be a number of offerings this season with Windows 7 availability.

There are a couple of good reasons to offer a smaller footprint XBox 360 sku...

1. Improve Reliability and Image: A change in console shape would immediately register in folks mind, that this isn't based on prior XBox 360 hardware iterations.
2. Eco-friendly, or at least more so. Smaller footprint usually translates into energy savings.
3. Ultra-Quiet. Solve the legacy issue of XBox console noise.

Where is the DOCSIS 3.0 version? Is there a reason we don't see more integrated cable modem offerings?

Swamp, its unlikely Microsoft will drop the 60GB sku to $299 after being on the market & priced at $349 for just a few months. Can you imagine how fumed those buyers would be? Now, I agree with the analyst..Microsoft needs a real price cut. I think the Elite sku is dead...it does not measure up to the just announced 80GB PS3 at $399. So heres a radical idea for Microsoft/XBox. Drop the Elite Model and make the Pro model available in black. Finally, drop $20 off during the holiday (that shouldn't upset those who bought 60GB sku at full price)...

$259 - Arcade
$329 - XBox 360 (White or Black)

If Microsoft decides to keep the Elite sku around...it desperately needs to be priced at/below $399.

The timing is probably just right for a 60GB sku. But don't be surprised if that spells the end for XBox Elite. Which might not be such a bad thing considering that the Elite is priced more than a 40GB PS3 with its blu-ray drive.

Cliff must know something about Microsoft's E3 announcement.

Someone asked how is $60,000 affordable. Well I agree, until we see sub $30k its out reach for most of us. Chevrolet's Volt looks very promising too. But the important thing, its not a thing of fiction anymore. When you consider the low number to be manufactured (at least initially)...$60,000 is a respectable price. Also think of the fuel savings. Compare to SUV 18mpg, 40 miles/day on average and $4/gallon...thats approximate $3200/year or $32000 over ten years. I assume there are fewer mechanical parts..so maintenance costs may be lower too. Give this another 5 years to mature and for a few manufacturers to introduce competing products.

Gold Membership suggestions to add value

- 2 movie rentals of your choosing
- make XBox Video Marketplace available via Media Center

I'd pay for the service in a heart beat.

I'm a Hero and XBox fan but I don't think this deal does enough. With the announcement of the $399 PS3/40GB/Blu-Ray system...Microsoft needs to get the price down on the HD DVD drive to about $99. And they probably should offer a $50 instant rebate this holiday season. If they did that then prices

w/Rebate w/Rebate+HD-DVD
XBox Arcade $229 $329
XBox Pro $299 $399
XBox Elite $399 $499

That brings the Pro more inline with the new 40GB/PS3 sku..less 20GBs. But make the elite a better deal overall.

Sony is using the money gained in the sale of their Cell Processor/Facilities to Toshiba to finance these cuts. I'm fairly certain in their minds, the are willing to lose $400-500 million to regain some momentum. My guess, is they are hoping for 3 million console sales this holiday.

My wishlist... a new Microsoft Vista PC and the Zune 80 just recently announced.