Don't worry about the video ram at 256. The system ram plus this adds up to 1 gig, and prett much all of that is used for graphics, so its really the same thing. As for price, lets see. You pay $100 (or $200) to get the console that will play BluRay discs (gonna have to pay $200 for xbox add on for HDDVD), and the online features are free (going to cost you monthly on XBOX 360). I would say in the end, you are going to save money and get a whole lot more features. It is really a very fair price in my oppinion.