Additional flash memory will be internal
As we reported recently, Microsoft also confirmed the release of the new replacement for the Xbox 360 Arcade, which is the new Xbox 360 4GB console. This package includes the Xbox 360 console unit without the hard drive, but instead includes 4GB of flash memory which is internally housed within the unit. The unit will start shipping on August 3rd in North America and will carry a retail price of $199.99 USD.
There is currently no word yet on when the hard drive unit for the slim Xbox 360 consoles will be released, but it is our understanding from our sources that Microsoft does intend to offer the 250GB hard drive for the slim Xbox 360 so that buyers of the 4GB bundle can upgrade to a hard drive. Despite some talk of a large hard drive also being offered for the slim Xbox 360 consoles, we have yet to hear if this will be a reality.
As for users of the current console, it is our understanding that ample numbers of the 250GB hard drive for the older Xbox 360 still remain in ample supply; at least for the time being it should not be an issue to lay your hands on one, should you want to upgrade your older console to the larger hard drive. Our sources tell us that Microsoft intends to keep the older hard drive available as long as there is significant demand for it.