I think MS needs to come out with a bundle including the Premium System and the HD-DVD for $499. This would equate to $100 less than buying the two devices separately, which also happens to be the price of the cheaper PS3 setup. The reason is simple: The cheaper PS3 is roughly comparable to the proposed bundle. 20GB hard drive, High-Def DVD. The more expensive PS3 is not exactly apples to apples - it has a 60GB hard drive and WiFi included (You can't buy a 60GB hard drive for the 360 and the WiFi adapter costs another $100).

Bundles are good for both Toshiba and MS, so they should both shoulder some of the cost. Toshiba will make it back on movie royalties and MS should make it back in system sales (eventually accessory/game sales). MS is doing really, really good this time around but they need to not give Sony a comparable price point like they're doing. Sony will win that game I think.

a price cut would be nice,then i can affort to buy 1 :)