[ChemicalWarrior]

Personally I wish they'd hold off till the transistion to 65nm process for Xenos and Xenon (Xenos is the ATi graphics inside 360 and Xenon the tri-core IBM processor) and drop prices.

I would likely buy a Xbox 360 if say they: Released the 120GB + HDMI model at $399, dropped the current Premium down to $299 and either simply remove the Core platform (and then release the current 20GB HD at $50 instead of $100 to encourage an upgrade) or release it at $199 with the before mentioned HD price reduction. Such a move would help focus even further on Xbox Live and increase the XBLA game limit to something that would make older classics possible and greatly encourage the homebrew community to develop full games for the 360 at very reasonable costs. It is but a dream though.

There's really no reason why that would not be possible for Microsoft to do. The point of this system I believe is to curb the price reduction and instead move into hardware profit much earlier than what is the tradition for consoles. With a system priced at what is expected (the article failed to cite that Australia tends to get over charged, I personally expect the system at $500 or possibly even $450) they will be making profit very early and of course the businessmen love that. As of now there's barely reason why a 120GB drive costs much more than 20GB (economics of scale, I'm willing to bet there's much more 120GB drives being manufactured than 20GB, you can hardly buy those, and major HD manufacturers have now started 100GB platters on their 2.5" lines and 120GB is right around the corner). A lot of that of course being speculation.