Sorry, we’re a bit late on this, but MTV got an analyst to break the cost of a 120Gb Xbox 360 hard drive down, and found that it actually costs Microsoft around $100. There’s a bit of a difference between that figure and the retail price of $180.
And if you think that’s funny, Americans, you’ll be glad to know that the same drive in the UK costs £130 or $254.
Alternatively, you could just buy a PS3 and swap the 40Gb drive with a 250Gb SATA drive for about £80. Just a thought.