Microsoft will be releasing two versions of the Xbox 360. There is a $299 version, which is in all respects but one is the same as the other. It does not have a hard drive or a few of the accessories. The $399 'Premium' version will come with a 20GB HDD Drive, and a wireless controller, a headset, ethernet cable, and a wireless remote. It remains to be seen if you can add a hard drive yourself after purchase of the system, though likely this will be frowned upon either way by Microsoft. $399 does seem a bit steep for a console, but then again this is an initial release. It will likely drop in price after a few months.