You won’t need a hard drive to enjoy all the benefits of Xbox Live Silver and Gold with the Core System, but you will at least need a Memory Unit (MU) in order to save your Gamer Profile. If you plan on downloading a lot of content (vehicles, maps, game trailers, demos, etc) you’ll want to get a hard drive.
Will I be able to download content from Xbox Live without a hard drive?
Yes, with the 64MB MU you will be able to download content. However, gamers that choose to download lots of content will want to get a hard drive for capacity and flexibility.
Why are there two different systems?
We wanted to give people the opportunity to purchase what they value most. If a hard drive is important to you, you can have one. If you don’t feel like you need one, then you don’t have to pay for it. And if you decide you want one later, you can always add one.
Why doesn’t the Core System come with HDTV cables standard? I thought this was the HD generation?
Not everyone has a high-definition (HD) TV yet. And those people shouldn’t have to pay for it until they’re ready. Once they do get an HDTV, then they can purchase the appropriate cable as an accessory.