Seagate is ramping up production of 200GB to 400GB hard drives, leading to the phasing out of 40GB and 80GB models. This transition is expected to result in a price drop for hard drives, allowing consumers to purchase higher capacity drives at lower prices soon. The discussion reflects on the rapid evolution of hard drive technology, highlighting how storage capacities have significantly increased over the years, with users expressing a growing need for larger storage due to multimedia files. The conversation also touches on the reliability and capacity of tape drives versus hard drives, and the potential future of storage technology, including the possibility of holographic storage and the role of SATA versus ATA interfaces. Overall, the sentiment indicates excitement for advancements in storage technology and the anticipated affordability of larger capacity drives.