500GB hard drive for Xbox 360 coming soon for $110, 320GB HDD price drop incoming

Microsoft recently announced via their own website that they will being selling a 500GB hard drive for the Xbox 360 in the near future. This HDD will retail for $109.99, $20 cheaper than the 320GB that they currently sell for $129.99.

MS says they will address the $20 price difference on the 320GB model in the near future and that it will get a price drop after the 500GB model releases. Right now they only sell the Xbox 360 E in 250GB and 4GB variations, making the 500GB HDD a solid upgrade for 4GB owners.

Perhaps with a bigger, less expensive hard drive releasing Microsoft may finally be preparing a legitimate, late in the generation final price drop for the Xbox 360? The basic SKU (Arcade, then Slim 4GB) has been $199 for years along with the “Elite” SKU (120GB, then slim 250GB) staying put at $299 for the past 5 years. You’d think at some point these suckers would drop to $99-$150 for the 4GB and potentially $200 for the 250GB.