Speaking to GameDaily BIZ, Wedbush Morgan analyst Michael Pachter said that Microsoft's 20GB HDD is no longer sufficient and they need to go bigger than the rumored 60GB.
"I think the console [manufacturers] all misjudged the quantity of downloadable content and the opportunity to actually download meaningful content, and so what sounded like a good idea in 2003 or 2004 in the design stage with the 20GB hard drive on the 360 was just not sufficient. Frankly, the surprise to me is that the new SKU is [purportedly] 60GB," he said. "I mean, I would think they'd introduce a 200GB or 500GB and eliminate the 20GB and make the 120GB the standard cheapie one".