Earlier this month, Microsoft claimed that $180 is a reasonable price for the Xbox 360 120GB HDD, but dissecting the new hard disk indicates otherwise.
Shortly after announcing the Xbox 360 Elite and its 120GB hard disk, Microsoft responded to users' dissatisfaction with the $180 price tag for the hard disk by claiming that the drive is actually " a 120 gig self-powered external PC drive" which "retail at anywhere from $160 to $200".
But several fan sites have managed to get an Xbox 360 Elite and dissect it, just to discover that the new 120GB hard disk is a Fujitsu MHW2120BH which retails for about $100 only. It seems that Microsoft has just wrapped the Fujitsu drive in a plastic casing with a SATA to 360 connector.
The drive is definitely not a "self-powered external" hard disk, as instructions on Xbox 360 official site clearly ask the user to " Be sure to power down the system before inserting or removing the hard drive".
We are still waiting for Microsoft's explanation for the hefty price difference.