Xbox 360 Elite - the upgraded Xbox360 - has been confirmed for a US launch on April 29th. The new black console - $479 or $80 more than the current system - will have a 120GB hard drive and a built-in HDMI port and comes complete with black accessories and an HDMI cable. HD-DVD playback will still need the add-on player though. Happy with a component cable for your HD TV or - gasp - still using an old school standard def set? Then you can buy the hard drive separately - $179 - and transfer all your data over with supplied cables. No news yet on European details, but you can expect Elite to be available well before Christmas.

So what does this all mean? Clearly Microsoft are responding to the PS3 and the knowledge that HD TV sales are rocketing. Lack of HDMI gives a perception that the 360 is technologically backward compared to PS3. The larger hard drive will be useful for downloading movies and TV from Live marketplace - the Euro service should start late this year - and hopefully the console will run quieter than it does now. A bit more hardware reliability would be nice too. But with no built in HD-DVD or wireless it still doesn't compete directly with the PS3. What it will do is confuse users, at least until the current top-end system is phased out.

In reality though Microsoft had no choice - HDMI etc may not be crucial now but come 2009 it will be. The 360 has an excellent online service and far better games than currently available on the PS3, but clearly isn't as technologically "future-proofed" as Sony's console. Elite rectifies some of this and will extend the 360's longer-term lifespan in the marketplace. But those of you who have just bought a 360 may feel a little aggrieved. How do you feel about the new Xbox and will it stop you buying a PS3?