If rumours coming from Fudzilla are to be believed, Microsoft is apparently planning to stop selling the Xbox 360 Elite in a number of territories. The Elite would still remain in Microsoft's console line-up, but only in special, limited run editions, such as the red, Resident Evil console (pictured).
Supposedly, the transition will happen in Q2, with Microsoft no longer taking orders, letting retailers' inventory run out. Once the Elite consoles currently on the market have been sold, the Xbox 360 Premium would become the high-end model.
The decision is said to be spurred on by retailers' desire not to stock large numbers of expensive Elite consoles which are less popular with customers than the Core and Premium SKUs. The plan would be to limit the number of retailers stocking Elite consoles, as gamers who want them are savvy enough to hunt out the shops selling them, again, helping stock shift faster.
Microsoft will apparently also add a larger hard drive both to Xbox 360 Elite consoles and as an upgrade option for existing models. I imagine Microsoft will be watching sales of the Res Evil edition Xbox 360 to see how well it does at retail, before finalising these plans - if they exist at all.