My Xbox 360 Premium model recently broke due to hardware failure, so I was in the market for a new Xbox 360. I took a risk by buying the more expensive model, the Elite, and I can say now that it was an extremely wise decision. From the day that I bought it, I haven't experienced any problems at all, and all my games run fine. The older model would frequently freeze, but this problem seemed to disappear in the Elite for me. The elite also comes with a much larger 120 gb hard drive, compared to the 20 gb that comes with the Premium. With 120gb, you can store more arcade games, movies, and other downloads. The Elite is also equipped with an HDMI port, so that graphics and image quality become much better on HDTV's. Finally, the black finish makes the console look sleeker than ever.
Compared to the Wii and PS3, the Xbox 360 Elite is overall a much better console. It has all the big name games like Halo 3, Gears of War, Mass Effect, Rock Band, Guitar Hero, and many others. Its online play is tuned to perfection and marketplace allows for easy distribution of downloadable content. If you're in the market for a next-gen console, the Xbox 360 Elite is the way to go.