Last week, Microsoft took the wraps off the Xbox 360 Elite. The upgraded machine features a 120 gigabyte hard drive, HDMI port and cable, a black finish instead of the white one on current versions, but no built-in HD DVD drive.

The machine will launch in the United States on 29 April priced at $480. Though Microsoft did not mention initial shipment volumes or launch dates in other major territories, it confirmed that it will be releasing the upgraded xBox 360 Elite outside the US as well.

Price quoted for Europe is €479.99 (£349.99 in the UK). In addition the 120GB HDD will be available on a standalone basis for existing Xbox 360 owners at $179.

“An updated Xbox 360 SKU offering greater HDD capacity comprehensively addresses a major shortcoming in the platform's positioning as a device to download and view film and TV content from Xbox Live,” says UK analysts Screen Digest.

“Previous maximum available HDD capacity of 20GB was not sufficient for Xbox 360 users to store more than small amounts of content. Films are available on a rental basis only: once downloaded, the user has 14 days to view the film, once he has started playing the file he has 24 hours to view the film as many times as desired before the file is deleted.”

It would appear there are currently no plans to supply movies (HD or SD) on a download-to-own basis over XBL, pointing out that the rental model is essential for continued studio support.

From a hardware perspective, the Elite configuration means there is less technical difference than ever between the Xbox 360 and PS3 platforms. However parity, in both cases, is achieved by purchasing the most expensive configuration of the platform and certain components separately.

Screen Digest calculated that the components which must be purchased separately for the Xbox 360 include the HD-DVD add-on for HD video playback ($199), a wifi adaptor ($60-$99), SD card reader ($20) and ongoing subscription fees for online multi-player gaming (around $50 per annum - introductory subscriptions are included in the Xbox 360 for 12 months XBL membership but ongoing access must be purchased separately).

Parity for PS3 necessitates purchasing the 60GB version as well as an external 60GB HDD (which does not require a proprietary HDD format, unlike Xbox 360), a wireless headset and HDMI cables ($10 for generic to $59.99 for Sony Style HDMI cables).

“Microsoft's strategy in releasing this SKU appears designed to maintain parity with Sony's PS3 platform in the battle to position the consoles as the primary hub in the broadband-enabled living room,” says Screen Digest. “There is little in these changes which improve the platforms appeal to gaming-oriented consumers outside slightly better audio and graphics output if HDMI is used.”

Story filed 01.04.07