Are you certain of that? I don't think anyone knows what these new consoles are fully capable of. The 512mb of Ram in the 360, not to mention the 10mb built into the gpu are astounding numbers for a console, and I think that is what developers can utilize the most. Having said that, IMHO, most installed Xbox 360's will still have the HDD in them. I just don't think it's an either/or equation here.