I have seen some ads from Futureshop and Walmart with this pricing - I thought to myself this is a good deal. Buying the hardrive IS A MUST. However the Xbox 360 has had a history of hardware problems since it release date though because of this they come with a 3 year replacement warranty instead of the standard 30-90 warranty. Microsoft is very good about replacing defective units but dealing with the customer support staff can be frustrating at times.
The developer/game support for this console is fantastic and IMO has the best controller.