Not much anymore. Initially, the Elites were based off 360's that managed to pass even the most rigorous testing within Microsoft's QA, while everything else might have only passed like 80% or so. Nowadays, the biggest difference is simply the color of the console, and the fact that the Elite comes with a hard drive, while the Arcade has some internal flash memory to store at least the NXE OS and such.
The elite is black and has a big hard drive. The arcade is white and doesnt have a hard drive.
Sscnum21mvp
Do I detect some racism? Lolz, just kidding. Anyways, the difference between an Elite and the Arcade is that the arcade is pretty much for younger kids to play on, or for those who do not plan to play most of the disk games. With the Arcade, you also get 5 free arcade games (or at least I did), and the Elite is currently coming with Fable 2, Batman, and some Lego game. The Elite also has a 120 gb hard drive, whereas the arcade has none. Another difference, as the person I quoted pointed out, is that the Elite is black and looks elegant and cool, whereas the arcade just looks white and normal like the original 360. Oh yea, one more difference is that the Elite outlasts all of the xbox360 variants and has dual fans. The price is different of course, but other than that, I do not notice any other differences.
The arcade doesn't have a hard drive, so unless you already have an xbox360 hard drive, or know somebody willing to part w/ theirs you'll end up spending quiet a bit to buy one. While a hard drive isn't nessissary for the 360 most gamers need one.
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