Same argument could be used for the sale of standard hard drives.
A 200Gig drive is in effect a 180-190Gig drive after formatting.
No, that's different.
Hard drives are marketed in bytes, and there are 1024 bytes in a kilobyte, 1024 kilobytes in a megabyte, and so on. For example, using a "200GB hard disk":
200,000,000,000 bytes / 1024 = 195312500 kilobytes
195312500 KB /1024 = 190734.86 MB
190734.86 MB /1024 = 186.26 GB.
Simlpe maths. No smoke and mirrors there, and there very little lost to "formatting" (as in: less than half a megabyte, which is nothing when talking gigabytes).
As for the XBox360, from the article:
"2GB is reserved to increase overall system functionality, including things like the Xbox emulator - to enable backwards compatibility - and console and title updates, to allow for continued innovation and expansion."
"This leaves 1GB for the machine's operating system itself."
What the hell? 2GB for an emulator? 1GB just for a console OS??? Talk about bloat!
Typical Microsoft I guess. Crap programming at it's worst. Perhaps they should have pinched a few oldschool quality Japanese programmers to show them exactly how much you *USED* to be able to squeeze into 64KB.