Here is my prediction. This is all my thoughts going off of the track record of Microsoft.

Microsoft will release the cost of Natal at their E3 press conference, which I believe is sometime before E3 on June 15th.

They will announce a standalone natal camera for around $99, and with that, a throw in game of some sort. The standalone bundle will be available in September/October time.

As for the bundles, they plan to bundle the Natal tech with an arcade for $249 with a 16GB USB stick. People say it is a good deal, but it will not come with any controllers. This new bundle may include a new smaller 360 to commemorate the 360's 5th anniversary. And hell, it may not red ring or E 74.

Then, they will say they have an ultimate package for the new gaming era. It will be the smaller, redesigned 360 (that will actually allow for standard HDD installation) the same as in the arcade, but it will be some sort of special branding. It will come with the following:

1x normal AC video cables

1x Xbox 360 wireless controller

1x Microsoft Natal Camera

1x power cable (no brick anymore)

1x Redesigned system 120 GB HDD

3 months xbox live

headset

built in wireless

slot loading disc drive

no ir reciever

same specs, 2 memory card holders, 4 usb slots ( 2 in back for natal, 2 in front for controller charging)

waaay more efficient cooling with cheaper components that cut cost of system manufacturing by nearly 40%.

All of this in the bundle will be around $299-$329 at the cheapest. $349 the most.

The new elite 360 will cost $249 and the arcade standalone will drop to just $149, the cheapest of any console yet.

Nintendo and Sony follow suit and drop the price of the Wii to $149 and the PS3 120GB to $249 respectively.

Sounds pretty awesome, amirite?

feedback, change of details.