While the fleeting dream of a hard drive expansion for the Xbox 360 seems to be slipping away, Microsoft is planning some hardware upgrades and has recently announced of them. At the GDC, Microsoft announced that for around $50, they are selling a 512MB Memory Unit upgrade kit for the console. A significant increase over the stock 64MB, it is not much use to the Premium owners which already have a HDD built in, but is definitely attractive to the cheaper versions of the console that lack this.
As a result of this unit being released, the existing 64MB expansion modules will be lowered in price. The expansion module will also allow someone to download content from an Xbox 360 Kiosk, then bring that content back home.