http://news.teamxbox.com/xbox/19068/Rumor-Microsoft-to-Axe-Xbox-360-Elite-Edition/

The story that we are hearing goes something like this… Microsoft will stop taking orders for the Xbox 360 Elite at some point during the second quarter and allow inventory of the Elite consoles to start to run down. The majority of retailers would prefer just a low-end and a high-end console, so this change will be made during the second quarter, which is the fourth fiscal quarter for Microsoft.

Once inventory is depleted, the Elite system will move to more of a limited edition role that will be available only at select retailers, and likely only in North America and Europe. The Elite consoles that will be available in these areas sbould be more like the recent Resident Evil 5 Red Elite Limited Edition console, rather than the standard Elite package that Microsoft has offered in the past.

Good idea or not?

I bought an Arcade and 120G HDD - cheaper than getting an elite so maybe this is a good idea.  I'm sure they will continue to sell 120G HDD

i think droping the arcade and lowering prices is a better idea

the arcade was the best thing that ever happened to the 360. that veing said i dont know anyone who owns a elite

What's the difference between an elite and a premium (I just know the elite is black and it has a pretty big HDD)?

I also think that they should drop the arcade sku. It's almost impossible to play HD games without having a HDD.

That would suck. I mean the Elite is the same price as a PS3 and the Elite has 40 GB's more than it. At least from a customer stand-point, it sucks.

I bought my elite when it first came out. Because I had hopes it would one day enable me to watch IPTV and install games to the hard drive. Only recently has th extra HDD space become useful. I wish they would upgrade it some instead of getting rid of it. If they did a few upgrades, like add an even bigger HDD and maybe make it wireless for all of those who whine about it then the extra investment would be worth it.

I'm not buying it. The elite is their most profitable console and still a few are sold here and there.

However, if MS does go along with this plan they better offer black pro versions or arcades. I hate the look of the white 360s. I'm not a fan of the red RE elites either.

I think it's a good idea overall. I still don't know why the 360 isn't being offered in numerous colors across the board, but that should definitly be implemented if this is true, and even if it's not. Really it should all be arcade models in various colors(Egg shell original, white, black, red, green, etc.)  and just bulk up the reponsibility of properly pricing and stocking hard drives as a necessary accessory. Give customers size options like 20GB, 60 GB, 120GB and even 240GB. Make the pricing entirely representative of the size, meaning 20GB retail for $20, 60GB for $60, etc. so even if it's overpriced for a hard drive at least it gives the customer somewhat of a justification for the price by pricing it by the GB. I know this can only work as a strategy in one region at a time so sue me.

I don't see why they would cut the elite. It makes them so much profit per unit sold

Beautiful business decision.

1. The price gap will be officially at least $100 between the highest 360 sku and the lowest PS3 sku.

2. The Elite will still be around for limited edition bundles like the RE5 bundle coming up so its not like its totally gone.

This is basically to kick Sony when they are down by eliminating the most expensive sku.