http://www.fragland.net/news/Michael-Pachter-500-GB-HDD-for-Xbox-360/18752/

Edit : Patcher's 500GB HDD prediction does seem a little crazy...  therefore I'll replace it with my own prediciton of 250GB HDD 

- 500 GB  250 GB HDD coming to the Elite

- 120 GB HDD coming to premiums

Harddrives are cheap to manufacture, so why would MS jump from 20 gigs to 60 gigs? It seems like a lot of energy and time will be spent by MS for a minor upgrade.

If MS really wants to take digital downloads to the next step with its marketplace then they'll need a much bigger HDD then 60 gigs.

120 gigs would be more then enough for the regular users, and 250gigs more then enough for the elites

hmmm...I have never seen a 500GB laptop hard drive available, the max I've seen is 320GB, so how can the 360 supposedly end up having a 500GB hard drive when it uses laptop hard drives, smells like BS to me.

So if 360 owners want to upgrade to that 500gb hdd what will it cost them givin the pricing of MS hdds ?

I really don't see how 500GB is more believable than 60GB...

That and it's Pachter. He's like an omen.

 It'll probably cost them a kidney.

Actually, 500 GB laptop HDDs are coming out in the very near futre. http://www.msnbc.msn.com/id/22528332/
I doubt they'll be cheap though

I think the HDD would only be available in new 360's at first. 

And in the future it wouldn't have to cost too much to upgrade to a 500gig, ex: 

Newegg.com sells 500gig for $144. Add a $50 MS "we like money" fee +$5 cheap plastic casing and you have a $199 500gig 360 HDD...

http://www.newegg.com/Product/Product.aspx?Item=N82E16822148294

Not a great example... but you see the point.

But isn't that a desktop HDD, and the Xbox 360 uses laptop HDD's which are significantly more expensive for the same storage capacity, and I don't believe one is out for 500gig.

edit: as a comparison...this is the best storage you could get on a laptop HDD from that same company.

 http://www.newegg.com/Product/Product.aspx?Item=N82E16822148307

I find this very unlikely to happen to this generation of Xbox. 60 gig and 120 gig seem more likely to me. MS 500 gig HDD would cost $700 or something stupid like that.

they should release a Solid State Drive version. There would be less heat.