By now you’ve probably heard that Microsoft is going to launch an upgraded version of the 360 dubbed the ‘Elite’ version in a few weeks. Just on this blog alone, its been very clear for months that I’ve been waiting for this. But the question is why am I so excited for this but giving no thought to the Playstation 3?

The Xbox 360 Elite is going to cost $480. But when you add in the cost of the HD-DVD add-on, which I will undoubtedly get, the price for the package becomes $680! The top-of-the-line PS3 by comparison costs $600 – with a Blu-ray player included!

So the 360 Elite with next-gen DVD package is actually $80 more then the oft-mentioned as over-priced PS3.

With this in mind, I find it very interesting that the PS3 can’t seem to get any good buzz, while the Xbox 360 Elite has most people up in a tizzy.

Though I didn’t think so at the time, in hindsight, Microsoft’s idea to have the HD-DVD player be an add-on after release looks like a great one (and one that was possibly necessary as HD-DVD likely wasn’t fully ready by the 360 launch). Though the add-on bumps the 360 into the same price range, and even above the PS3, the fact that it’s an optional purchase that can be made at a later time, makes it seem more attractive then it actually is.

Add into this the idea that the format war has still yet to be decided and whereas if Blu-ray wins, your Xbox 360 isn’t 100% tied to HD-DVD, if HD-DVD wins, Sony will be in big trouble with the PS3…and will likely have to create a HD-DVD add-on. It could all come full circle.

With Bill Gates about to move on to greener pastures, Microsoft should consider promoting everyone who works on the 360 team, especially the marketing folks, to the parent company. Microsoft products in general don’t get a lot of love these days, but the Xbox team has managed to release a 360 that is $80 more then their “over-priced” competitor and get nothing but love for it!

[UPDATE]: The BBC is reporting that Playstation 3 supposedly set sales records in the UK, where it finally just launched. Maybe things are starting to turn around for them…

…but then Microsoft is likely officially announcing the new Xbox 360 Elite tomorrow. Something else is also set to be announced to, could it be the Halo 3 beta? That would not be good news for Sony.

[UPDATE 2]: And yep, here’s Tina Wood’s video officially showing off the Xbox 360 Elite. It’ll be out April 29th in the U.S. and Canada for $479.