It seems that Microsoft may be discontinuing the Elite version of the Xbox 360, to the despair of those fans of HD downloading onto their console. The drop in price of the Pro and Arcade models has left shops up and down the country with Elite models clogging up the storerooms.

As a result, Microsoft will almost certainly be killing its priciest incarnation, save for a few limited edition game-themed coming with 120GB of on board storage capacity. As with everything else, the current worldwide recession is being blamed, although the bargains that can be had for the Pro and Arcades must be making hitting the Elite, coupled with the fact that 60GB is really more than enough storage for most gamers.

In any case, Microsoft is expected to be making an announcement in the next two weeks, and will be offering upgraded drives for those who want more storage for XBox Live Arcade and film extras.

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