When Microsoft announced that they would be delivering two different 360 models they said that the Core would end up selling more than the Pro.  The Core model would be $100 cheaper than the Pro at launch and would not include the 20GB HDD.  Most people took one look at the core and knew right away it was inferior even at that low price.  It became know as the "tard pack"  among gamers.  It's no surprise that consumers began buying the Pro at a rate of 4 to 1 compared to Core.

Now another rumor has the Core being phased out of a major retailer.  This time it seems Target has decided to stop carrying the model.  With Target and Best Buy discontinuing the Core it seems retailers are just reaffirming the consumers choice of buying the Pro instead of the Core.  Now with the launch of the Elite it seems stores have decided having three 360s is just one too many.

The Core had potential as a mid life cycle unit where early adapters could have saved some money on upgrading their console.  By offering the Core at launch the 360 was hamstrung by not allowing developers to utilize the hard drive.  Since developers don't know if the user will have a hard drive they can't use that space as temporary memory for games.   Now as new and improved 360's are coming out it doesn't look like the Core will ever get these improvements.  It seems new Pro 360s are hitting the streets with HDMI ports but the Core 360s are not getting HDMI.

Microsoft has said that they are not killing off the Core but it may come that retail just isn't giving them the option.  A cheap Core would compete better against the Wii but at $279 that is not going to happen.  Microsoft may not want to see the Core go away but if other retails stop offering the Core it might as well be discontinued.