http://xbox360.ign.com/articles/642/642645p1.html
IGN: Why did you decide to offer two SKUs, isn't that confusing for the consumer?
Peter Moore: If there is a lesson I think we have learned in the previous generation is that gamers want choice. Some gamers want simply to play a game and have none of the, in their estimation, some of the frills of the gaming experience, and price becomes paramount for them. At the same time, we believe it's important to offer them the ability to set up and upgrade. But if price becomes the key factor, we wanted to have that as well for as a choice for the consumer. $299 is a spectacular price point. And certainly in Europe in particular, I think we learned our lesson, that 479 euros and a March launch was not the optimal mix of what was going on.
IGN: Why did you decide to offer two SKUs, isn't that confusing for the consumer?
Peter Moore: If there is a lesson I think we have learned in the previous generation is that gamers want choice. Some gamers want simply to play a game and have none of the, in their estimation, some of the frills of the gaming experience, and price becomes paramount for them. At the same time, we believe it's important to offer them the ability to set up and upgrade. But if price becomes the key factor, we wanted to have that as well for as a choice for the consumer. $299 is a spectacular price point. And certainly in Europe in particular, I think we learned our lesson, that 479 euros and a March launch was not the optimal mix of what was going on.