Via engadget: We've confirmed with trusted sources that the black Xbox 360 is indeed coming (the image above is of the original 360 dev kit, FYI), and will be dubbed the Xbox 360 Elite. Here's what you need to know about it: * The Elite will be limited quantities only; that may be as much or as little as a couple hundred thousand. * The case, controller, and Live headset will all be black. It will have all new packaging. * Elite will cost $479, and will be a 3rd SKU; it will be sold alongside Premium and Core packs. * Eventually Elite hardware (in white plastics) will take the role of the Xbox Premium. That is to say, after the Elite is launched and sold out, future Xbox Premiums will have 120GB / HDMI. * We do not yet know exactly when 120GB / HDMI will become the standard for Premium, but it is loosely estimated to be late summer or fall. * Elite models run cooler than normal 360s, but they are not yet confirmed to have 65nm chips. * Prices may remain the same with the 120GB / HDMI hardware upgrade in the Premium Xbox, but we may still see a price cut on the line when 65nm chips start shipping. * The HD DVD drive will not be internal or bundled -- Microsoft never did or nor does not currently have plans to put an HD DVD drive in the 360. * There are no current plans to integrate WiFi into the Elite or future Premiums (although that can always change). Source Very interesting...

There were tons of rumors about there being an HD-DVD drive built in...do you think they're not because they don't think HD-DVD will do well? Or just because it's expensive...

i don't see what's so special about this model. basically the only important thing is the addition of a larger hard drive.... but you have to pay more money. i would be impressed if they sold this model at $400, but overall i'm underwhelmed. It's a good deal, just not great, especially since it doesn't come with wifi built in.

Is it just me or does $480 sound a bit expensive for just 100GB extra and HDMI considering that the current Premium is expected to drop in price." Yes it does and it's why i don't believe this.

I really do want the HDMI port. And chances are this sku is expensive because of the hard drive. it might be a 2.5

I think that is a rip off. At that price i would buy the lower end ps3 and get a bluray player. It would be smarter just to buy an external hd. HDMI, pfft. I am pretty sure all of 360 games to 1080i at best, usually 720p, and component cables can do that just fine. If they only do the 480 price to lauch the black models, and then quickly lower the premium to say 350 and put the elite at 400 then it's a good deal. But three skus, that sounds stupid.

If this is true, it's very weird. 1. Why would Microsoft think -- especially with the evidence of the PS3 and the Wii! -- that an even more high-priced system was a good idea? All it does is narrow the perceived price gap between the PS3 and 360, which isn't in Microsoft's interests. 2. Why on earth would any gamer buy the limited edition, knowing that in a few months it'll be available for much cheaper? A deep, abiding love of black? If all this does is delay their price cuts by a few months and give them an opportunity to extract a bit of cash from the wealthy, well, it's not the worst decision ever. But it seems like it'd be better to wait a few months, introduce these machines as the regular Premium, drop the prices as appropriate, and go from there. Launching a more expensive SKU, even temporarily, is just bizarre.

I think this model will be the 65nm processor one... but I doubt they will tell people that. I believe that this model will be far more reliable than the current 360 how else would it run cooler?