Microsoft confirms 120GB HD price drop to $149.99

http://www.joystiq.com/2008/09/11/microsoft-confirms-120gb-hdd-reduced-to-149/

It was originally $179.99. So it's a good start.

Don't forget, the new 60GB HD by themselves will be $99.99 (plus come with 3 free months of Xbox Live)

I might want to upgrade my hard drive down the line a ways.... I gave my 120GB to Mai, and mine is used mostly for FFXI, and Rock Band DLC.