Xbox Next = $299.99 on November 9th, 2005
(comes with 2 Gig flash memory drive, HD DVD Drive, and built-in ethernet, no BC support)
Xbox Next HD = $349 in Summer '06 (or around PS3 launch)
(40 gig HD, HD DVD Drive, Backwards compatible)
AAA Games = $55 Initial Sale
AA Games = $49.99
Bargain Games = $19.99 to $39.99
People are too used to the $49.99 price point for new games. Only the few, highest quality games can garner a price jump (Halo's, Mario's, Zelda's, Half-life's, GTA's, Madden's, etc.). Any other game that tries to go there will be hurt on overall sales more than the increase in revenue will make up for.