This one's still a long ways from actually panning out, but Fudzilla is reporting that Microsoft could be about to phase out its standard Xbox 360 Elite console and instead fill out the top end of the scale with limited edition models like the recent Resident Evil 5 bundle. According to the site's unnamed sources, Microsoft would get the transition started by simply letting inventory dry up beginning sometime in the second quarter of this year, during which time it would apparently limit sales of the console to North America and Europe. Then, once those have all been moved off the shelves, Microsoft would supposedly shift its attention to new, potentially even pricier, limited edition consoles, which themselves could well be limited to select retailers. In other Xbox 360 news, Fudzilla also says that Microsoft could soon be offering a new standalone hard drive that's bigger than the 120GB drive now found in the Elite, although there's no indication as to exactly how much bigger.

[Via Joystiq]

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Xbox 360 Elite being phased out in favor of limited edition models?