The "Xbox Games" forum, which includes Retro Game Reviews, has been archived and is now read-only. You cannot post here or create a new thread or review on this forum.
What you have to remember is that, in addition to the costs of the ATi chip and the rest of the hardware, Microsoft also have to finance the Silver XBOX Live people, a 20GB HDD and TiVo Functionality?
I know it's just a standard DVD-9 player, not HD-DVD, but all the other components, plus VAT, plus supply < Demand is going to knock the price up. It'll be christmas, it's the first next gen machine out and there's no other similarly functional product out there.
There'll be plenty of time for a price-drop when the PS3 hits the shelves (especially in the UK) but until then, I wouldn't expect to be paying any less that £250.
Morrowind: Oblivion
Around the 200 mark I'de say!