The current rumor is “later this month” Microsoft will announce a 60GB model of the Xbox 360 and phase out the old 20GB product line. This was intercepted (read: leaked) from an e-mail Microsoft sent to gamestop and Blockbuster, so you can only take it as “rumor” until a real announcement.
This new SKU would make the gap between 20GB (small) and the 120GB (big) smaller, allowing for consumers to pick a product in the middle without spending needless cash on the 120GB version. The larger disk is great for media downloads, movie rentals on Xbox Live, but for the typical gamer it might be a bit over-done. However, with Rock Band and Guitar Hero having downloadable content (DLC) having 20GB is getting harder each month.
The e-mail went on to say that stand-alone purchase of the 60GB hard disk would retail for $99.99. Great news, unless you recently purchased a full priced 20GB disk. The 120GB disk would also reduce by $30.00 in response.
Believe it or not, it’s a rumor that continues to flow from multiple sources. Undoubtedly Microsoft is going to deny anything about it until they actually want to announce it.
(Thanks, 1up)
Simply amazing news 
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