Dean Takahashi has a post
up on his blog with a little more information behind the two SKU approach MS took with the 360. Highlights with my comments:
- Not as many developers were taking advantage of the hard drive as expected (and now you've killed the market entirely)
- The hard drive alone costs about $50 for the device (why not have a smaller 4-5 GB for the core edition?)
- MS is looking to be profitable off the first generation of machines this time (this explains a lot)
- The core edition will not be backwards compatible since you need the HD to download the patches to play the games
- 360 was designed from the start to work with or without the hard drive
- More announcements coming at the X05 event in Amsterdam next month,might finally get a release date.
BTW, if you haven't read Dean's book on the launch of the original X-box you're missing some great insight into the industry. I actually ran into him at E3 this year (in the Sony booth no less) and he's not working on a follow-up, which is kind of a bummer.