While that's not exactly a compelling price, it's good to see Microsoft has finally realised that one gigabyte of storage is worth less than one dollar.
Previously, the 250GB hard drive was only available with console bundles, such as the Modern Warfare 2, Mass Effect 2 or Final Fantasy XIII bundles.
What this means for the existing hard drive range is not yet clear. We've contacted Microsoft to clarify and will update this post when we hear.
UPDATE: Microsoft has confirmed the 120GB hard drive is no longer available. It has been replaced by the 250GB drive. The 60GB "Starter Kit" (which also includes a wired headset, ethernet cable and a three month Xbox Live Gold subscription) will remain on sale at $149.95 RRP.