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The thing is, a 80 gig hard drive cost around 60 bucks... a 512 meg CF card is around 100 bucks so they would not be saving any cash.
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Absolutely right. On top of that, hard drives are reliable, tried-and-true devices as opposed to some sort of brand new flash system that's never been used before.
If the new flash device is one of those large (GB's large) HD replacements, then fine.
But if they remove the HD functionality for custom soundtracks, downloadable content, etc., then this is a major mistake, and I think the Xbox will go the way of the Dreamcast...
The Xbox must differentiate itself from the PlayStation - not simply provide an alternative. In the current incarnation, that means superior graphics and power, coupled with built-in Ethernet and a hard drive.
If Microsoft doesn't make a similar leap with the Xbox 2, there will be no clear technological edge over the ubiquitous PlayStation, and they won't stand a chance.
However, if this flash device is, say 2 GB or more, and provides the same functionality as the current HD with a smaller form factor - we'll all be excited about it.
It's too early to panic yet... I think...
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