Microsoft has made a somewhat shocking announcement, they've more than doubled the largest available hard drive for the Xbox 360, yet they've kept the price the same. Available next week, the 250 GB Hard Drive Kit will set you back $130. This hard drive was previously only available in special edition bundles like the Splinter Cell Conviction or Modern Warfare 2 bundle.
Of course, the $130 price tag still isn't the cheapest it should be, but a lot of folks were speculating we'd be seeing a price tag closer to $200 on this. Most external 2.5" hard drives, like this one by Western Digital, go for $60-$80. Still it'll be good to not have to constantly add and remove content from your 20, 60 or 120GB drive for all that good co-op DLC.
Update: According to Major Nelson, the transfer cable comes bundled with the drive to transfer all your old content and saves to the new hard disk.