RancidLunchmeat
Veteran
Well, okay. A lot of this hinges on how savvy the average customer is, and I can't argue on that because it'd just be baseless speculation anyway. But the thing is, the elite used to be a good deal. In fact, before HDMI became standard, it was probably the best deal if you didn't already own a 360. Even after HDMI became standard it was a pretty decent deal. It's just been made to look worse and worse comparatively: MS really hasn't done anything to make the package more attractive since it was released, relative to the other SKUs.
Huh? The best deal to who? It was insanely expensive and only 'the best deal' if you were going to download movies and required a bigger HDD, or if you needed to use the HDMI input because that's all your TV had. For most people, the premium of the Elite made it far from the best deal. I bought an Elite because it was black, because I had an un-used HDMI input and because I planned on downloading movies and storing content on my 360.
Things that go beyond what most basic gamers do.
I think this is fairly silly. It's just a name. Why not create a new Premium SKU titled 'The Best', and draw a glass of champagne and a Ferrari on the box? I own an elite. I bought it because it was a good deal, not because it's an 'Elite'. Your argument might hold if we were talking about shopping for yachts. Just having a fancy name doesn't automatically make it a luxury item.
You do realize that Ferrari licenses their name and logo for exactly that purpose, correct? It seems to me your example proves the point, it doesn't dispel it. Elite signifies it's the top of the line model, that you can't get any better. The color scheme identifies it as such, just as a Ferrari logo would.
Either way, you're paying a premium for having something that is immediately distinguishable as the best. Paint it black and call it Elite or paint it red with a yellow Ferrari logo on it. It's the same thing. Only one doesn't cost MS royalties.