360: No more Pro
But a price cut likely for the Elite
The rumours are true. Microsoft has pulled the plug on the mid-range Xbox 360 Pro, and will now only produce the entry-level Arcade and high-spec Elite models.
The Pro originally shipped with a 20GB HD, which was upped to 60GB last year. However, with the launch of services such as 360 games on demand and the ever-growing XBLA library, it seems that Microsoft doesn’t consider 60GB is enough for its core audience.
In cutting the Pro from the Xbox lineup, Microsoft is losing the best-selling version of the 360. Sensibly, then, it seems that the company will follow up by cutting the price of the 120GB 360 Elite, although the exact terms of a price drop have not been officially announced. It has also been rumoured that the Arcade will actually go up in price, making it pretty obvious that Microsoft wants new adopters to be pushed into buying Elites.
But we can’t be overly cynical. With the games industry shifting towards an online, service-based model, having a serious hard drive will become even more essential in coming months. And with seemingly nothing in the pipeline regarding a successor to the 360, it makes sense for Microsoft to build a base of customers who own the version of its console with the best storage spec.
Update: Arcade model price hike is now a reality. £159.99 RRP, and the XBLA games have been removed from the Arcade bundle.

i think this might be a mistake. i think they should get rid of the arcade and selling the pro closer to the arcade price.
as regards to the push towards the Games on demand (downloading full price games) i think its too early for that, fast broadband is too expensive and microsoft needs to change the harddrive so you can put any drive in it.
and Need for Speed Most Wanted is £19.99 a 2 year game thats a virual product!