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Lower end 120GB laptop harddrives are about $70 upper end about $100, whereas 250GBs lower end is $120 and the upper end being $150.

Ask yourself, is Microsoft really going to tack on another $70 to the premium and $30-$80 for the Elite.

Hell no, they are in a race for price against Sony. Like I said, if there was a harddrive increase it'd be on the premium from 20GB to 60GB. All Microsoft wants to do is be able to say "Our 2 SKUs have larger harddrives than Sony's", not "Our consoles cost $700 because we felt like putting in a 500GB harddrive".