I completely agree with the recent Sony comments that this is a disservice to the people who bought the Core bundle. It forces them to buy a tiny thimble like harddrive which will be absolutely useless for downloading and storing video content from XBLM.

Worse of course is that Sony has every reason to deride the hardware aspect of the service in that they provide some of that content, and offer a competing content delivery platform with more harddrive space, with the option to upgrade that harddrive (which isn't an aspect of 360 (user purchased harddrive upgrade through OEM or retailers that aren't MS), nor has Sony actually announced how that process will work in any detail for the PS3).

What's important here for MS though is to downplay the recent Sony comments by offering a bigger better priced harddrive to Core and Premium 360 console owners. Core owners that haven't yet purchased a harddrive will now have reaason to but will be happier to purchase a more capacious drive (than the 13 gig thimble) as well as the premium owners can also buy a new drive since the 13 gig thimble isn't good for much more than XBLA arcade game storage.

Will MS offer a bigger harddrive to counter Sony's comments that may end up doing damage to the XBLM service? or won't they even though it is a very important feature of the platform that's MIA?