QUOTE(Bandit5317 @ Jun 24 2009, 05:58 PM)

I seriously doubt that. Currently, the largest 2.5" HDDs available have a 500 GB capacity. In order to get 1 TB, they'd either have to move up to the 3.5" range (I don't see how you could fit a 3.5" on any current iteration of the Xbox 360) or make the enclosure a bit taller and shove two 500 GB drives in RAID inside it. If you were to buy two of the cheapest 2.5" 500 GB HDDs from Newegg, it would cost $170.
we'll, this article is talking about Microsoft releasing a 1TB HDD alongside Natal - so that would be in 2010 & by then, we will have 2.5" 1TB HDD's
QUOTE(ghaladream @ Jun 24 2009, 05:58 PM)

Considering the 120GB HDD by itself is anywhere between $139.99 and $179.99 brand new, depending on where you go, I would expect the 1TB hard drive to be no less than $500. Good job MS. If not that, it will definitely be priced at, or more than the current 360 arcade system.
There is no way Microsoft will charge $500 for a 1TB HDD in 2010/11 - nobody will buy it.
It would be priced the same as the 120GB HDD is now as HDD prices will go down as time goes on & capacity will go up (also forcing prices down).
QUOTE(cooljerk_dv @ Jun 24 2009, 06:50 PM)

it would be nice if you could just connect a usb external with your own hdd; and have the 360 format it in the format it needs
That may lead to inconstant HDD read speeds which may not help the console overall.
I'm not sure what would happen to existing games designed with the HDD in mind (HALO, Crackdown, Arcade titles), as a USB HDD would be much slower than a SATA one.
However, it would be fine for Photo's, Videos (+Marketplace) & Music - just like how the PS3 does it at the moment.