A story posted on the Ubergizmo site today states, "Word on the street has it that Microsoft aims to stop production of the Xbox 360 Elite as per their original plan..."
The story appears to derive from Fudzilla, then via Joystiq. The Fudzilla story - by David Stellmack, says, "Microsoft will stop taking orders for the Xbox 360 Elite at some point during the second quarter and allow inventory of the Elite consoles to start to run down. The majority of retailers would prefer just a low-end and a high-end console, so this change will be made during the second quarter, which is the fourth fiscal quarter for Microsoft.
"Once inventory is depleted, the Elite system will move to more of a limited edition role that will be available only at select retailers, and likely only in North America and Europe. The Elite consoles that will be available in these areas sbould be more like the recent Resident Evil 5 Red Elite Limited Edition console, rather than the standard Elite package that Microsoft has offered in the past."
We contacted Microsoft in the UK today and were told, "We don't comment on rumour or speculation".