Disappointment abounds for 360 owners as we hear the truth from Microsoft about a supposed hard drive upgrade for the device. It now seems that Microsoft will not offer such an upgrade, at least not in the near future. They said it rather curtly, too:

Come on, you know Microsoft presentations. How many times have you been to GC? Would this company announce a product in such a ragged manner? Quote: No large non removable disk is announced.
That really is a shame, considering the limitations the stock HDDs already can bring. Of course, if you don't mind voiding your warranty... Most curiously is how quickly it was dismissed. The 360 has a semi-modular design, leading to the idea that Microsoft does seek to sell (more)add ons in the future.