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Last year, Hitachi Global Storage Technologies predicted hard-drive companies would announce 1 terabyte drives by the end of 2006. Hitachi was only off by a few days.

The company said on Thursday that it will come out with a 3.5-inch-diameter 1 terabyte drive for desktops in the first quarter, then follow up in the second quarter with 3.5-inch terabyte drives for digital video recorders, bundled with software called Audio-Visual Storage Manager for easier retrieval of data, and corporate storage systems.

The Deskstar 7K1000 will cost $399 when it comes out. That comes to about 40 cents a gigabyte. Hitachi will also come out with a similar 750GB drive. Rival Seagate Technology will come out with a 1 terabyte drive in the first half of 2007.