The $299 bundle is a complete ripoff. Wired controller, no HD cable, no Hard Drive, and no remote? No thanks.
No different than any other brand new console released in the last 7 years or so. Wasn't the PS2 $500 at launch? It didn't have a hard drive.
Seriously MS is losing tons of money on each console, I don't know why anyone expected different pricing. There is THREE 3.2Ghz processors in there, a next-gen graphics chip that isn't available on a PC yet (and when it is I bet the video cards themselves will cost $400-$500 alone), 512MB RAM, etc.
But for $100 more you get a hard drive ($100), Component HD cables ($40), wireless controller ($50), headset ($20), remote ($30), lifetime Xbox Live silver membership (I know that one sucks, but it's something. at least lets you download the content). So by buying the $399 version you save $140. If you were to buy a core system then buy these components it would cost you $540.
Sign me up! I can't wait to play games at 720p on my projector. 100 inches FTW!