I posted this because I can't see how somebody who can only afford a $99 console with $15 installments on the principle loan is going to buy new games @ $60 a piece after the fact. What is the logic there? It's not like they're going to buy a $49 ICS phone from AT&T and load up on free apps and $0.99 specials.
The point you've apparently missed (along with all the "real" costings) is that the target market for this isn't actually games players at all. It's people who want a set top box that gives them access to numerous online services for movies, tv and music (and just so happens to also play games). The Xbox 360 has already become the home entertainment hub device that other efforts like MCE or AppleTV had tried, less successfully, to accomplish.