I guarantee the price will drop when the PS3 comes out. And the camera is not only for games, but for conferencing too. As far as the HDDVD is concerned, Microsoft wants it cheap to compete with the stand alone HDDVD players. So that way, if you have a 360, it'll be alot cheaper to buy the add-on then it would be to buy a stand alone HDDVD player. That's there take. There's a video of it on GameSpot.com
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