Microsoft is cutting the 20gb Premium model of the Xbox 360 and is reducing the price of the remaining units to $299.99 US while supplies last. In its place, they're adding a new 60gb Premium console at the $349.99 price point. It has been rumoured for some time that MS would be adding more storage space to the base unit, given the similarly priced 40gb PS3 has double the storage capacity of the current Premium console. Many gamers who like downloadable games and content off Xbox Live found their 20gb HDD filling up rather quickly.

While this is a good move by Microsoft, I think it's high time they allow for better storage options in the form of DIY hard drive upgrades, allowing users to have as much or as little space as they want. While external hard drives can be used with the 360, the can only store media files, not downloadable games or saves. The current Xbox branded hard drive units are overpriced.