According to Electronista, the top end console is going to be killed off in its everyday incarnation, with only limited edition, game themed models coming with 120GB of on board storage.
Word is that the recession, coupled with knockdown prices for the Arcade and Pro versions, is causing the £230 console to pile up in stores the world over. Microsoft is planning an official announcement in the next fortnight, with those after more storage for XBLA and movie extras being offered bigger upgrade drives instead.
Either way, it's a blow for Microsoft's plans to lead the HD download revolution with their newest Xbox.
What do you think? Is the Xbox 360 Elite still worth it? Or is the 60GB Pro enough for you? Tell us in the comments section.
Xbox 360 Elite
On sale: Now