@RPG : Then we agree (least partially and I hope you can at least understand my perspective), but I still think the bigger limitations are to come...my real point is with the type of games targetted for the 360 it was silly to exclude a hard-drive especially when u consider the pricing as you mention, why segment your customer base when not only could you only charged them a few extra $$$ to include if not a neccessary then a critical component...what is done is done, all we can do is wait and see how it plays out...
@Tim : It's a little more difficult to discuss the subject with you because you come across as a fanboy, i.e. refuse to accept any criticism as *yes, MS stuffed up there* when i have done it a few times with Sony over the last couple of days (mentioned the marketing perspective and the backward compatibity)..
Game costing R1000 is not BS, i had a few friends that bought games (even ps3 like Motorstorm 2 for over R900, not sure of the exact price) and they were not happy...
So it's not BS, similarly, the HDD isssue is BS to you because you haven't been unfortunate to discover the limitations or post-purchase costs after buying the Arcade...
So you didn't have a choice when u bought your 360 (supposedly, but u could have not purchased one, bought a wii or PS3 or gotten a gaming PC) but if you referring exclusively to the hdd then i can confidently say that in the scenario if there was a Arcade next to the model you bought, you wouldn't have even picked up the arcade...
Now to pricing, yes there are LSM's and there's a thin line between exploiting them and serving them...So MS will make an entry level console for them but then charge R1600 (basically the same as a console) for them to add a hard-drive if they choose to in the future..so reaslistically, these gamers never have a choice in the end...WHo would buy a entry level and then pay exorbitant amounts to enhance their gaming...Which is exactly how this thread started...SO MS cares about them from a console perspective but nails them from an upgrade and add-on perspective....sweet !
MS arcade sales are great (i'll make this assumption from your comment), but for who? In the long run, only for MS !!!
We are arguing in circles because we have a difference in opinion in terms of the need of a HDD for modern gaming and the target market needs, doubt either of us are going to change our opinion, we shared everything we wanted to, i'm willing to listen to your last response and i'll leave it there ...