On a side note though, I truly believe that MS is going to start gearing down in the next year or two and start prepping for their next system. Rumours are starting to come out that Sony wants to be first out of the gate this time, but I'm sure MS won't want that. And MS has already shown that they are willing to run a four year cycle, as with the 1st x-box, before they released their next one.
They dropped the XBOX because they were taking huge losses on it, specifically because of the hard drive. The got the market recognition they wanted and moved to the 360. This is why there was a HDD less SKU which is now paying off for them bigtime.