"Microsoft has announced a two model Xbox 360 strategy including a stripped down version which will sell in Australia for around $390. The high end version will go to market at around $499.00.

What has not been revealed is whether the Australian versions that are due early in 2006 will include an Xbox 360 running a version of Microsoft Media Centre.

It marks the first time a gaming console has been introduced at a multiple price point, something common with other electronic gadgets. Analysts said it is a good strategy by Microsoft in its battle against Sony, the reigning champion of home video game systems.

By Launching an Xbox 360 with a version of Media Centre running will allow Microsoft to lower the entry price of a Media Centre while also eliminating all of the software associated with the general Windows XP operating system.

"It's a pretty smart move,' said Alan Davis, a stock analyst at McAdams Wright Ragen. David Cole, an analyst at San Diego-based game-industry watcher DFC Intelligence, agreed. "Anything that gives a consumer more choice is a good thing," he said." [more]