The 360 Elite will sport several new features as well as a smooth black finish reminiscent of the original Xbox models.
The console will ship in the US on 29 April at US$479. Current Xbox models cost US$299 and US$399.
No date was given for a European release, although a company spokesperson said Microsoft plans to sell the console worldwide.
The Elite model will be the first to sport HDMI output allowing users to hook the console to a television with a single cable providing HD video with progressive scan (1080p) and surround sound.
Current Xbox 360 models offer interlaced HD Video (1080i) through traditional multi-plug component cables.
The Elite console will also feature a larger 120GB hard drive. The largest hard drive previously available on the Xbox 360 was a 20GB model.
Microsoft will ship a collection of custom black accessories to match the Xbox Elite's new paint job, including a black headset and wireless controller and black rechargeable battery packs.
The upgrades bring the 18-month old Xbox 360 specs closer to those of Sony's PlayStation 3, which first shipped in November with HDMI output and a 20GB or 60GB hard drive.
The move also comes less than a week after the official European PlayStation 3 launch.
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