Microsoft phasing out memory units and 120GB hard drive

Larry "Major Nelson" Hryb has confirmed the inevitable to Joystiq: Xbox 360 Memory Units and the 120GB hard drive are being phased out. Acknowledging what's been in the stars since February, the Xbox spokesman stated that "the channel is being drained" of the storage options. The same goes for Memory Units, which, after today's official announcement of USB support, makes the MU even less useful.

This makes the $130 250GB HDD the primary option ... well, at least until this fall, if the Xbox Slim comes to pass.