MSFT might have two versions of the next Xbox

I understand the approach, but why not incorporate those features into both and make some additional hardware items a differentiating factor, like Nintendo did. Things like Wifi, Kinect, extra storage, free content should be included in the higher end version. The lower end one shouldn't have this. That's my suggestion. Granted with the way that this next generation is going with having two versions (ala Wii), it makes total sense to do things this way. That way you drive customers to get the version which they will utilize the most. A majority of gamers and families will see the value in buying the high end version. Also, the sum of the additional parts to the low end version, should add up to more than the cost of the high end version with everything included, but only by a few tens of dollars. That way you will drive people to the higher end version because they will see a perceived value in getting the more expensive version.

http://www.theverge.com/2012/11/21/3674802/xbox-tv-set-top-box-casual-gaming-streaming-2013