Still not enough IMO, but at least its a cut.
Now that the Xbox 360 line-up has been giving a serious price gutting
in the US of A, the cuts continue, with the 120GB hard drive seeing a
$30 reduction. Previously at $179, it would have been an even harder
prospective purchase for anyone picking up a $199 Xbox 360 Arcade. The
hard drive add on is now slightly more reasonably* priced at $149 at
both EBGames and Amazon. Thanks to Matt for the heads up.
Source: Kotaku