http://gizmodo.com/5023074/rumor-leaked-microsoft-email-confirms-60gb-hard-drive-package-120gb-hard-drive-price-drop

the 60GB will be available seperately and in a value pack with a wired headset, 3 monthes of XBL Gold and an ethernet cable

What a ripoff. I wouldn't even call the 120gb drive a bargain at that price.

I picked up the 120 a few months ago off Amazon for that price, new. It was that price for about 2 weeks.