Tuesday night Microsoft confirmed what we all pretty much already knew and announced the new higher-end Xbox 360 SKU -- the 360 Elite:

...a new model of the video game and entertainment system that will include a 120GB hard drive, a high-definition multimedia interface (HDMI) port, a high-definition cable, and a premium black finish for the console, wireless controller and Xbox LIVE® headset.

The new unit will hit stores at the end of April and, contrary to some rumors, is not be scheduled to replace the Premium model.

Three SKUs? This is very clearly a case of Microsoft just not getting it -- by positioning this new model at a price point where you can't help but compare it to the $500 low-end PS3 they do a great job of making it look overpriced and underpowered. The obvious choice of action would have been to launch this model at the Premium pricepoint and knocked the Premium model down to the Core's slot (eliminating the hard-driveless Core model entirely), but instead what we end up with is a mish-mash of choices that all seem to be just overpriced enough to make you think twice before buying.

(More pics at Gizmodo)