simple reasons like this...high quality wifi, rechargable controlers, free online play and content. Look at the cost of the seperate components and you can see its a great price for what you get. I mean look at the price of a blu ray player! I also think that when you look at it overall you can kinda see microsoft have realised they are going to be trailer soon.
Reason being....i look at the this section of the forums and i see at least 3 threads a day regarding a dead/dying/disk killing 360. Also the fact that MS recognised they had built a poor quality machine....the extension of the warranty. And finally the Elite....a direct response to the PS3 and its expanding catalouge of games. HDMI & A decent size HD, two things the PS3 has as standard and that MS needed to try capture those looking to purhcase in the build up to christmas.
or am i wrong?