I think that the people who buy the Elite will be people who want to use HDMI for DVD's and games @ 1080p. I don't think that they are going to sell more units because of it, but it does fill a niche and I'm sure it will sell and make particular fanboys very happy. I do expect it to be a stepping stone to eliminating the core 360. I also think that we would have seen HD-DVD in the Elite, if the format had maintained its market share from a year ago. Even M$ is admitting its an unproven format. I would have liked to see the newer chipset in it though. I bet they are making money on this one.