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Gikas told GameDAILY BIZ that he knew with a "high degree of certainty" that the 360 would indeed launch with two SKUs, although he refused to speculate on the all-important question of whether the low-end model would include a smaller hard drive (thereby making it standard) as opposed to not having one at all.

"Microsoft knows $299 is important," Gikas explained. "They know that historically that's been the launch sweet spot, but they also don't want to take such large hardware losses this time. Of the 1 million units Microsoft is expected to have available at launch, I expect 80% of them will probably be the more expensive SKU, because that's what early adopters are going to want."

As for the higher end model, Gikas conceded that it could come in as low as $350, but $399 seems like the most probably price point. He stressed that the model will likely include "all the additional peripherals gamers would want to buy anyway," as well.

SPOOFE wrote:Because it sounds technical and "kewl". It gives a subconscious sensation of authority. It's the mentality that drives Star Trek scriptwriters.

Praxis wrote:The question is, are these "extra peripherals" the hard drive, or is the hard drive on the low end model and the high end one a bigger hard drive and the remote and headset and controller keyboard and camera, etc, etc?

Praxis wrote:Side note; I don't believe this has been mentioned, but there were pictures of the XBox 360 released (all spanish) showing a keyboard that attaches on the bottom of the controller.