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You may see one of the main guys switch to flash... by '12 flash storage will be cheaper and much faster reading than any standard HDD. It will likely use USB 3.0 connection unless SATA has reached the same level by that time. The only problem with this is security... the whole damn thing will have to be incrypted. Of course no one has broken the 360's encryption... you can't run burned disk on an unmodded system.