Over on MTV's Multiplayer blog, Stephen Totilo was wondering about Microsoft's recent actions. To date, they've discontinued the 20GB Xbox 360 model and lowered the price for it, replacing it with a 60GB model at its US$ 349 price point. They're also continuing to sell the hard drive-less Xbox 360 Arcade model, which doesn't make immediate sense given the push for more storage.

Well, Don Mattrick, head of Microsoft's Xbox division, explained both decisions. Says Mattrick of the Xbox 360 20GB discontinuation and the introduction of the 60GB Pro Model:

What we’ve made a decision is that we can deliver three times the amount of storage to consumers with our Pro [version of the machine]. We wanted to work with our retail partners to manage the channel. And whenever you have a transition like that you need to develop a program against it. I think what we’ve done is over-deliver value to consumers.

Of Microsoft's continuing sales of the Xbox 360 Arcade Model, Mattrick explained that it was a matter of offering choice to consumers:

What we’ve learned is that consumers like choice. So we’re providing a choice in flexibility to consumers. There’s different entry points. There’s different types of experiences people want to use. That program is working for us. Retailers like it. Consumers like it. So that’s why we have it.

All in all, the steps they're proposing seem like good moves in light of the recent strength of their competitors. We'll have to wait and see if it turns the tide their way, however.

---

Related Articles:

• Microsoft officially announces Xbox 360 20 GB price cut, unveils 60 GB unit