According to
Trusted Reviews, Microsoft is set to announce a 60GB version of the Xbox 360. They don't know if the 60GB SKU will replace the 20GB one or if it will be an additional line but they said to expect an announcement of the new SKU at E3. If it happens, look for Chuck to run up on stage and punch the Microsoft exec announcing it. Really he hates different SKUs with a passion. It's rather funny. You have to admit if it did happen, it would make for a
great E3 press conference.