Phwoar, this is certainly something for all you storage buffs to look forward to. Seagate have stood up proud just recently to let everyone know they're working on hard drives with a MASSIVE 2.5TB capacity to be released by sometime 2009. Might seem like quite a ways yet but it'll come up quicker then we think!
At the IDEMA DISKON show in Santa Clara, California, Seagate demonstrated a magnetic recording device with a whopping 421 Gbits per square inch density. To put that in perspective, the company recently announced 160GB 5400.3 2.5" perpendicular notebook drives that have an areal density of 135 Gbits per square inch. Toshiba, the current commercial density leaders, recently demonstrated 2.5" hard drives with areal densities of 188 Gbits per square inch.