This Sunday, the Xbox 360 Elite makes its official debut in stores. We were critical of the Elite's value at its introductory price of $479 in our recent Vs. Mode exchange with San Jose Mercury News technology columnist Dean Takahashi. Yet the folks at Microsoft, every gracious, still sent one of the brawny black boxes our way. The unboxing, alas, will have to wait for another day, as other real-life obligations prevent us from getting to it right now. In its place, we have an email Q&A with Albert Penello, Xbox 360 Group Marketing Manager about how the Elite works; what consumers can expect from the data transfer process; and why people who switch from an existing Xbox 360 to an Elite will have to be online connected to access the downloadable content they've already purchased.

The majority of gamers have purchased an Xbox 360 Premium. If they buy the 120 gigabyte hard drive, what is the process for moving the games, TV shows and movies stored on their 20 gigabyte hard drive over to the 120 gigabyte hard drive?

It is a one time process and is very easy. We will provide a Hard Drive Migration Kit with each standalone 120 gigabyte hard drive, whereby customers can use a migration cable to transfer data from their old hard drive to their new one. Each standalone 120 gigabyte hard drive will include step-by-step directions for this process, which is pretty straightforward. First, you will need to disconnect all accessories from the controller ports and turn off your console with your existing hard drive attached. Then you will simply connect one end of the transfer cable to your 120 gigabyte hard drive, connecting the other end of the transfer cable to a USB port on your console. Finally, after turning on your console, you will connect and turn on a controller, insert the Hard Drive Transfer Disc, and follow the on-screen instructions. When done with this process a user will have all their information, game save data, Marketplace content, etc on the 120 gigabyte hard drive, while their 20 gigabyte hard drive will be wiped clean and free for use on another console, or to be sold or traded-in.

Let's say a gamer who buys the 120 gigabyte hard drive wants even more capacity. In the above scenario, can that gamer choose to transfer some content onto the 120 gigabyte hard drive (e.g. movies) while leaving other content (e.g. games) on their existing 20 gigabyte hard drive, and swap the two hard drives depending on whether they want to watch a movie or play a game?

Not in a manner that we support with a single Xbox Live account. 120 gigabyte is a ton of space, especially considering the overwhelming majority of Xbox 360 users have yet to fill their 20 gigabyte drives. What we found was users who were excited about video downloads from Marketplace, who were reluctant to download on their existing 20 gigabyte drive due to concerns over filling up their drive. With 120 gigabytes we have opened up the ceiling for anyone to start taking advantage of the breadth of great content on Xbox Live, plus users always have their virtual locker and are free to re-download any purchased game or television content at a later date.

Will the 120 gigabyte hard drive ship in both black and white? If not, what is the timetable for introducing a white model?

The standalone 120 gigabyte hard drive will be similar to the existing 20 gigabyte, it will be grey on the top with chrome side panels. All Xbox 360 Elite consoles will come with a black 120 gigabyte hard drive.

On Xbox 360, downloadable content--games, TV shows and movies--are tied to specific consoles rather than, say, gamertags. So if an existing Xbox 360 Premium owner chooses to replace it with an Xbox 360 Elite, what is the process for moving the downloadable content stored on the Premium's 20 gigabyte hard drive over to the Elite's 120 gigabyte hard drive?

First, I should say that we think the best upgrade path for existing Xbox 360 owners who are looking for more space is the stand-alone 120 gigabyte hard drive, it comes packaged with the Hard Drive Migration Kit and gets users up and running the same day. While we know there will be fans of the console who will want to upgrade to an Elite, we definitely see it as for new buyers.

People wishing to migrate data from an existing Xbox 360 to Elite will be able to obtain a free hard drive migration kit through Xbox.com. As you mention, licenses for downloaded content like Xbox Live Arcade games and TV shows from Marketplace are tied to your console and your Live account not your hard drive. People wishing to migrate data from an existing Xbox 360 to Elite should know that the hard drive transfer kit will move all data from your 20 gigabyte hard drive to your Xbox 360 Elite System's 120 gigabyte hard drive, but due to data security provisions it cannot move the licenses associated with some content. This means that while all Xbox Live Arcade games and Xbox Live Marketplace TV shows will transfer, the user will have to be connected to Xbox Live in order to access that content.

I think it's fair to say that a regular Live user is likely always connected to the network, so they may not even notice. That said, we do want people to be aware of this fact before they upgrade, if they are concerned they should choose the standalone 120 gigabyte hard drive.

You've told us that gamers who upgrade from one Xbox 360 to another must be connected to Live in order to use their previously downloaded content. To avoid this, can they simply re-download all of their previously downloaded content on their new machine? If not, can they transfer their old content and licenses, delete the content, then re-download it so that their old content will be tied to their new machine?

They can re-download the content, but just like the process outlined above, their licenses will not transfer and they will need to be connected to Xbox Live in order to access some content.

Why are the content licenses tied to individual Xbox 360s rather than gamertags, hard drives and memory cards?

Content licenses are tied to a user's Xbox Live account and their Xbox 360 as part of Microsoft's data security provisions.

Microsoft officials have said that the Elite is aimed primarily at those who haven't yet bought an Xbox 360, as opposed to the early adopters. But certain Elite features, most notably the HDMI output and the larger hard drive--would be very much of interest to the hardcore gamers who've already bought a Premium. Microsoft has further stated its intention to treat the Xbox 360 like the iPod and introduce new versions on a more frequent schedule than, say, the PS1 or the PS2. Isn't it incumbent on Microsoft to come up with a more user-friendly way of managing content licenses than requiring that gamers who upgrade from one Xbox 360 to another be connected to Live in order to use their previously downloaded content?

We have worked with our partners to make Xbox 360 and Xbox Live a ground breaking digital distribution platform. Managing content licenses and providing a fair environment for the IP rights of our partners and the usage rights of our customers is something we take very seriously.

For those existing users who want more storage, we recommend the standalone 120 gigabyte hard drive. I understand there will be hardcore users who have to get Elite just because it's out there or because they want HDMI or because it's black. We love those guys and were telling them if they go that route, they will need to be connected to Xbox Live to use some of their content in the future. Most of our hardcore users, especially those regularly downloading from Xbox Live, always stay connected, so it shouldn't be an issue for them. The license issue we're describing we feel is worth letting users know about, however from practical perspective, the majority of users probably won't even notice a change.

Historically, consoles have steadily come down in price. Since the PS1, hardware redesigns have centered on style, size reductions and parts reductions, the latter to help the console manufacturer save money. The Xbox 360 Elite, by contrast, comes at a higher price. And while it does come with additional features, like HDMI output and the bigger hard drive, the latter is an add-on feature, while the former only comes with the Elite. Doesn't this strategy run the risk of alienating your hardcore gamers/early adopters, who may want the HDMI output, but aren't willing to pay even more than they originally paid for their Premiums?

I think our approach with Xbox 360 is more modular then consoles have been in the past, which allows customers to upgrade their experience as we work to enhance the Live network. Users can purchase a Core, and as their habits change or evolve, they have the flexibility of upgrading to either a 20 gigabyte or 120 gigabyte hard drive at a later date. For those who know they will be a heavy Xbox Live user, or are excited about the prospect of downloading lots of HD games and movies, we have the Elite. We launched a larger storage option because our user base demanded we do, the success of video downloads and Arcade has been a pleasant surprise. We are only going to continue to grow the lineup of content available on Xbox Live.

Xbox 360 owners can enjoy 1080p games and video experiences today with the Xbox 360 or Xbox 360 Core they already have, so I think HDMI is less of a point of contention. If anything, I think the launch of the PS3 has shown that HDMI doesn't affect the quality of the gaming experience. It does give our users a bit more flexibility on how they connect to their display, which is one of the reasons why we also included two sets of HD cables with Elite.

We believe our customers choose Xbox 360 for our unparalleled HD gaming and entertainment content. That said, we offer our customers the choice to purchase any of the three consoles offerings (Core, $299; Xbox 360 $399; and now Elite, $479) and then add those accessories that best meet their gaming and entertainment needs. The games you play on the Core system through component look just as amazing as the games played on Elite through HDMI.