this post was submitted on 27 Oct 2023
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The base model of the 360 shipped with no hard drive at all, it used memory cards. I know because that was the SKU I got until I bought an add-on drive. The 20GB one was the big one. Nobody thought the 20GB PS3 compared unfavorably to the base Xbox SKU.
I mean, you're right that people fixated on the 60GB model in that the $600 tag was a psychological barrier, but it certainly wasn't the most expensive console at launch, mainstream or not. It takes a bit of cherry picking to argue that the Neo Geo wasn't mainstream or that the absolutely existing 20GB model (also the SKU I got) doesn't count.
Ultimately, price was a factor and the PS3 launch was weak, but it wasn't a disaster and it wasn't as overpriced as people make it out to be, as you said.