“What we have done is release a smaller laptop size drive. If you compare what we are offering with a real plug-and-play drive the closest thing would be to take a 120 gig self-powered external PC drive,” said Microsoft’s Aaron Greenberg. “In that case we are seeing those retail at anywhere from $160 to $200 for comparable laptop sized external hard drives”
$179 for 120GB? It doesn’t matter what you take into consideration… that is expensive! Even top of the line hard drives cost far less than $1/GB, but this drive is closer to $1.50/GB. It’s too bad that the Xbox 360 doesn’t have the hard drive upgrade capabilities of the Playstation3.
Source: Daily Tech