"This hard drive is not being sold separately," Xbox Live programming director Larry 'Major Nelson' Hryb noted during a video examining the bundle, embedded below.
Microsoft currently sells two different configurations of the Xbox 360 hardware--the $200 Arcade, which has 512MB of storage, and a $300 Elite that comes with a 120GB HDD.
The 120GB hard drive is available separately for $150, a purchase geared towards those with an Arcade unit or an earlier model of the Xbox 360 with a smaller hard drive. A 60GB HDD, 3 months of Xbox Live and a headset are also available in a $100 bundle.
Along with game saves, the Xbox 360's hard drive is used to store downloaded content, such as full games and game add-ons, optional game installs, music and more. BOOM video 2591