Well it's £209.99 in the UK, very cheap for a next-generation console and a controller, the full pack at £279.99 isn't too bad either.
However making the hard drive non-standard was a very unwise discussion in my opinion and leaves the door open to Sony to include one as standard and gives them ammunition in the fight.
But at least in the financial conditions they're in they can't compete on price.
At £209.99 the Xbox 360 will dominate the last quarter.