After discovering that the Xbox 360 120GB hard drive has been discounted in Europe "while supplies last," Joystiq has now learned that the drive has been discounted in the United States as well. When asked if the European discount would make it overseas, a Microsoft representative informed Joystiq that the drive has been reduced to $129.99. Again, the rep noted that the discount will apply "while supplies last," which implies that the 120GB drive won't be around for much longer. When asked directly if the unit was being discontinued, the rep stated only that she couldn't comment.
It would seem that several retailers haven't gotten the memo, as many still list the drive at a $149 price point (the $129 price is listed on GameStop's website, for what it's worth). Of course, the drive can also be found much cheaper than the new $129 price, though readers should be aware that there is a very healthy knock-off hard drive market out there.
While Microsoft won't directly confirm that the 120GB is kaput, all signs are certainly pointing that way. The company has already announced that a 250GB standalone drive will be made available in Japan. With the price cut now effective in Europe and the US "while supplies last," it's likely only a matter of time before Microsoft announces the 250GB drive for other territories.