A point of contention that came with this generation of the Xbox has been the multiple SKUs of the system. While the Arcade was a great way to introduce new players to the system for a cheap price, it limited gamers to a certain extent because had no hard drive to save on.
Well, according to a report from Digital Foundry expects the same approach to be taken with the next generation of Xbox. They go on to say Microsoft might take the strategy even further: “a pared down machine is to be released as cheaply as possible, and positioned more along the lines of a set-top box (the use of 360 as a Netflix viewing platform in the US is colossal) and perhaps as a Kinect-themed gaming portal, while a more fully-featured machine with optical drive, hard disk and backward compatibility aimed at the hardcore would be released at a higher price-point.”
We’ll see how that turns out. I’d like to see a system that allows external memory in the form of a USB harddrive or flash drive to be integrated, but I’m going to guess odds are low since that would make things extremely convenient and inexpensive.