If the Nyko device is $40, and a 2TB 3.5" SATA is around $65, you're saving about $10. I just paid $115 for a 2TB 2.5" SATA.

http://www.amazon.com/gp/product/B00...?ie=UTF8&psc=1

The value is at 3 TB or greater as those don't exists on 2.5" SATA's yet.