Why were they selling them so cheap anyway? I guess they were selling them off quick to make room in their warehouses for the proper next gen consoles from Nintendo and Sony.
I read that xbox360 has actually managed to sell less since launch than the original xbox did in the same timeframe. They were targetting 10m sales by the end of the year, and are apparently struck at around 4m.
For the record, I am definitely NOT an xbox360 hater - I very nearly bought one a couple of months back, and will probably pick one up in the next year.