Microsoft 'to launch new X-box'

Elite model will compete at high end with Sony's Playstation3

Microsoft will today announce a new version of the Xbox 360 console with better graphics, a bigger hard disk and a stylish black case, according to a report in the New York Times.

The Xbox 360 Elite will hit US shops late next month at $479 - $80 more than the 360 Pro and $180 more than the basic Xbox 360, the paper reports.

It will pack a 120GB, and HDMI port, and a wireless controller and headset. The current standard model has a 20Gbyte drive.

The new model will create more competition for Sony’s PS3 at the high-end of the market. The PS3 has only just gone on sale in Europe but is being outsold by both Nintendo’s Wii and the Xbox in the US.

There was no word on the European availability of the Elite.