Microsoft to sell Xbox 360 with larger hard drive

By Lisa Baertlein

LOS ANGELES (Reuters) - Microsoft Corp. said on Tuesday it will begin selling a new version of its Xbox 360 console that transmits high-definition video and comes with a larger hard drive in its latest effort to position the video game machine as a digital media hub.

Microsoft's new Xbox 360 Elite, with a 120-gigabyte hard drive and High Definition Multimedia Interface (HDMI) port, will be available on April 29 in the United States and Canada for $479.99.

The hard drive on the new machine is six times bigger than the current high-end Xbox 360 model, which retails for $399.

Microsoft said the Elite hard drive has space to hold a library of arcade games and thousands of songs, as well as high-definition TV shows and movies downloaded from the company's Xbox LIVE online service.

"Today's games and entertainment enthusiast has an insatiable appetite for digital high-definition content," said Peter Moore, corporate vice president for the Interactive Entertainment Business at Microsoft.

Microsoft said it will sell the Elite alongside existing Xbox 360 systems and it will offer the detachable 120 gigabyte hard drive for $179.99.

MULTIFRONT WAR

Microsoft released the Xbox 360 a full year ahead of Sony Corp.'s new PlayStation 3 and Nintendo Co. Ltd.'s Wii, grabbing an early lead in the new, three-way video game console war.