

Microsoft on Monday introduced a slimmer version of the Xbox 360 console amid demonstrations of its controller-free gaming device Kinect.

The new Xbox 360 costs the same as its predecessor ($300) and will begin shipping to retailers today, according to Microsoft.

Other features include a removable 250-GB hard drive (up from 120 GB), 802.11N Wi-Fi connectivity, five USB slots, touch-sensitive power buttons and backward compatibility with all games (but not your existing hard drives or Memory Unit memory cards). Microsoft also claims the new Xbox runs quieter than previous versions, as the console now has one large fan as opposed to two small fans.

The console also sports a "Kinect-Ready" port that hooks up directly to Kinect. (It's unclear how to connect to Kinect with the older Xbox. We've put in a query with Microsoft.)

The announcement concluded Microsoft's press conference at the E3 gaming convention. Earlier in the conference, Microsoft showcased its upcoming Xbox 360 accessory Kinect, which uses multiple cameras to track a player's body movements and translate them into game controls. Several major gaming companies, including Konami and Activision, showed off new titles utilizing the device.

Due for release later this year, the Kinect device puts Microsoft's Xbox in closer competition with Nintendo's Wii, whose Wiimote features a combination of motion and optical sensors enabling players to manipulate objects on the screen with hand gestures.

Updated 1:30 p.m. PT with additional details on the new Xbox 360.

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Photos: Jim Merithew/Wired.com