Xbox 360 users who are big fans of downloadable games and other content will like this rumor. Rumors are pointing to the Xbox 360 getting a 1TB hard drive update.

The reason for the massive hard drive according to some analysts is a Games on Demand service coming to the Xbox. The higher capacity drive is said to be launching at the same time as Project Natal.

Exactly when the Natal powered Xbox will launch is a subject of debate. Ballmer said at one point it would be 2010 and then backpedaled on the launch date.

Via TechRadar