After months of delay, Microsoft Corporation has finally announced release date and a price for Xbox 360 Elite, a long-awaited upgraded version of its next-generation video game console, giving a sigh of relief to gamers who were eagerly waiting for the device.

Microsoft confirmed Tuesday that the much-anticipated ‘elite’ version of Xbox 360 will launch on April 29 at an estimated retail price of US$479.99.

The 'Xbox 360 Elite', which will hit the markets sixteen months after its predecessor launched, will include a 120GB hard drive, a high-definition multimedia interface (HDMI) port, a high-definition cable, and a premium black finish wireless controller and Xbox LIVE headset. The machine will come bundled with one month of free Xbox Live Gold 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. "Xbox 360 Elite's larger hard drive and premium accessories will allow our community to enjoy all that the next generation of entertainment has to offer."

The Elite hard drive, which is six times bigger than the current high-end Xbox 360 model, 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.

However, there are two features that are reportedly missing from the Xbox 360 Elite, built-in WiFi and an internal HD DVD drive.

The original Xbox 360 comes with a 20GB hard drive. Owners of the original console who want the new 120 GB hard drive will be able to purchase it separately for US$179. Gamers will be able to transfer the data from the 20 GB Xbox 360 hard drive to the upgraded version with the help of a cable and software provided with the drive.

Microsoft launched the two models of the original Xbox 360, which according to Wedbush Morgan Securities has sold 5.1 million units in the U.S. through February, in 2005, the $299 Core system, which does not feature a hard drive, and the $399 20 GB Premium, which will remain on the market at their current price points.

On the ‘elite’ version of Xbox360, Albert Penello, director of global platform marketing for Xbox, said, "This is a new SKU in our lineup," adding further "As we introduce the larger hard drive, new people can make a choice. No matter what price point you want to enter gaming, we have something for gamers. It's up to the consumer where they want to enter the HD gaming market."

The Redmond, Washington based software giant said that it is complimenting its Xbox Live Marketplace with video content from New Line Cinema, A&E Network, the National Geographic Channel (NGC) and extreme sports site TotalVid.

Xbox Live will include latest releases from New Line films, such as "The Texas Chainsaw Massacre: The Beginning," "Snakes on a Plane" and "Tenacious D and the Pick of Destiny" and such catalog titles as the "Austin Powers" films and "Magnolia." A&E will bring such TV shows as "Dog: The Bounty Hunter," "King of Cars," "Driving Force," "Criss Angel Mindfreak" and "Gene Simmons: Family Jewels" to the service, while NGC will have such shows as "Is It Real?" and "Taboo" as well as documentaries including "Air Force One" and "21 Days to Baghdad."

The Xbox Live that allows gamers to buy and download TV shows in HD and rent and download movies in HD, has become the No. 2 overall online digital video distribution network behind only Apple's iTunes, Penello said.

Warner Bros. Pictures, Paramount Pictures, Lionsgate Entertainment, CBS, ABC, Adult Swim, the CW, Spike TV, ABC, NBC, Nicktoons Network, Nickelodeon, VH1, MTV, MTV2, UFC and NASCAR.com are already providing content through Xbox Live Network.