Microsoft has a history of releasing product with significant amounts of flaws. However, this is more of a crazy like a fox move to sell product and further push the ps3 to low end second place. The next generation game console won't JUST be a game console! It's quite possible we'll go back to flash chips & hard drives instead of optical media. XDHC could make a big entry into this marketplace with 256gb flash chips costing $50. Games will cost $90+.
**This will be a breakaway point for the PC industry.. the O/S will end up sitting on these chips for most PC's when that day comes and traditional SSD's will see some competition from hot-swappable xdhc.