The redesigned Xbox 360 will be getting a new SKU later this year. Microsoft has confirmed a $199 variant for the fall, making it the slim equivalent of an Xbox 360 Arcade.

The $199 variant was discovered in an internal marketing Q&A by Kotaku, and later confirmed by Microsoft (via Joystiq). It is unknown whether this version will include a hard drive or internal WiFi.

A Kinect bundle was also mentioned in the Q&A, but the document said that they have “no additional details about pricing or retail strategy to share at this time.” Microsoft declined to comment on the Kinect bundle.

Regardless, a Kinect bundle seems inevitable; the only question is how much it will cost. Between that and the two Slim SKUs, look for the older model to be quietly phased out as we head into the holiday season.

You will no longer need a remote control to play video games on Xbox 360. Today Microsoft unveiled Kinect, which is a motion senser for the Xbox 360 which will allow you to play video games without a control, you simply act out the motions you want the character in the game to do and it will do them!

This product has been in development for years and it is certaibnly to put video gaming into the next level as game makers will rush to make new games and existing games compatible with Kinect. Unlike other motion sensors, you do not have to wear a sensor on you. Your actions will be picked up by the sensor and will be carried out in the game.

There is a depth sensor that maps 48 points on your body making it an excellent motion sensor. Response is immediate so you do not have to worry about being killed by zombies because your character did not move at the same time that you did.

Currently there are 6 new games that are compatible with this technology. One of them is an adventure, river rafting game, another one is a star wars game, a dancing game and even a running game where you participate in track and field events.

This product will be available in November and it will be just in time for the holiday season. It is expected for this product to be a hot seller so if you can pre-purchase it, do it. Or else you will be the only one without one. The Xbox 360 Kinect will change the video game industry. It will also help bring families together and help gets kid in shape since they’re going to be running, jumping, moving and all that good stuff instead of just sitting there thumbing around on a controller.

Parents, if you love your kids, you will get them this. Not because they will have more fun, but because you will be looking out for the health in terms of doing more exercise!

The Xbox 360 Slim has been the rumor that everyone is dying to get confirmation of.  It is believed that an announcement is coming this morning at Microsoft’s E3 presser. The ad in question was running on the Italian games site Console Tribe, and it said the Slim would come with a 250gb hard drive and built-in wifi (this console generation hasn’t been nice to those who bought early, has it?), and it pushes the Kinect angle. The slim is kinda wacky-looking too, as you can see, but you know.

—————- Update —————-

Attendees at Microsoft’s annual E3 press conference are accustomed to flashy game announcements and big-budget trailers, but the company had a surprise in store at today’s Los Angeles event. The Xbox 360 is getting a slimmer, angular new look, and an internal redesign that’ll reduce noise and add much-wanted new features — and it’ll be in stores as soon as this week.

Packing a black-finished case with prominent cooling vents, the new machine — nicknamed the Xbox “Slim” by fans — will retail for $299, the same price as the current 120 GB Xbox 360 Elite system. It will be compatible with all Xbox 360 games and hardware, with the exception of old-style external hard drives and memory cards.

It’s not any more powerful, but the redesigned 360 nevertheless addresses a number of recurring gripes with the existing design: aside from being smaller, it’s quieter, includes built-in super-fast 802.11n wireless networking, and packs an internal, replaceable 250 GB hard drive.

It’s also equipped with a smaller power supply, a dedicated connector for Microsoft’s upcoming Kinect motion control system, and five USB ports. A matching black wireless controller will ship with the system.

Conflicting reports exist on whether the older models will remain on sale, but according to at least one specialist blog, the normally reliable Joystiq, Microsoft is indeed “no longer manufacturing the original Xbox 360 hardware in any form.”

Alternatively, Microsoft is cutting prices of the existing Xbox range to $149 for the basic Arcade model, and $249 for the upgraded Elite. It’s unclear whether that’s a time-limited clearance offer, or if it’ll be permanent — but if you want to snag a cheap Xbox, and you’re not too bothered about getting the brand-new Slim, this could be your chance.
Source:Yahoo!

If the video game world were following its normal cycle, console makers would be revealing details of their next generation systems in less than two weeks. This cycle is anything but normal, though – and so at this year’s Electronic Entertainment Expo (E3), game makers will instead chart a new path.

Rather than introducing new systems, Microsoft and Sony will both introduce motion sensor controllers that are intended to both attract a new audience to the Xbox 360 and PlayStation 3 – and extend the lifespan of those systems by at least another three years. Nintendo, which is still seeing great success with the Wii, will focus instead on once again innovating the portable world.

Independent video-game publishers, meanwhile, hope to energize their top franchises to boost sales, after a disappointing 2009.

Here’s a look at what to expect from some of the industry’s big players:

Microsoft:
The motion sensor, currently code-named “Project Natal,” will have its debut three days before E3′s official kickoff, with an opulent coming-out party that will feature a performance by Cirque du Soleil. The retail name of the system, its full functionality (both gaming- and non-gaming) and several titles that will utilize it will be unveiled. The retail price might remain under wraps a bit longer, though, as ‘Natal’ isn’t expected to go on sale until late this year.

Xbox 360:
Microsoft will also likely further broaden the Xbox 360′s non-gaming functionality, introducing a new general entertainment partner as it has the past two years (when Netflix and Last.fm were integrated into the system). Hulu.com has been rumored as a contender, but there are several hurdles that would need to be cleared (though this would be a good opportunity for the television- and film-streaming service to introduce a pay model for).

Gamewise, “Halo: Reach” will be in the spotlight – as it’s expected to be Microsoft’s biggest title this holiday season. And “Gears of War III” – next year’s tentpole – will have plenty of exposure as well.

Sony:
Beyond the Move controller, Sony may finally follow through on plans to introduce a paid premium service for its PlayStation Network online portal. This would be on top of the existing free service, with added benefits, though exactly what those will be is still unclear.

Wall Street is also watching to see if rumors of a new portable gaming device prove to be true. Whispers indicate Sony will unveil the PSP 2 at the show – a true sequel to their handheld system, as opposed to last year’s PSP Go, which offered changes to the existing hardware and was generally considered a sales disappointment. With the growing strength of Apple in the handheld gaming space, Sony will need to radically shake up its PSP product line if it hopes to remain competitive.

Finally, expect Sony to give 3D a little lip service, announcing a U.S. launch date for a system update that will let the PS3 play games in stereoscopic 3D, along with backward compatibility for several existing titles and some downloadable new ones specifically designed for 3D. It will turn heads, but without a 3D-capable television, which have only gone on sale in the last few months, it won’t impact many players.

Nintendo:
Nintendo typically has the biggest surprises of the show, but many of those have already leaked out. The biggest is the forthcoming release of the 3DS, a handheld gaming system that shows games in stereoscopic 3D without the need for special glasses. It’s a virtual certainty the company will have the system playable at the show – and many expect Nintendo to announce a launch date of this holiday.

The company will also give more details on the Vitality Sensor it briefly announced last year. Like “Wii Fit,” this peripheral seems an odd fit for a gaming machine at first glance, given its purpose is to relax players, rather than excite and engage them. But Nintendo has proven itself quite adept at making seemingly incompatible peripherals big sellers.

Another “Zelda” title will be unveiled at the show as well – and fans might hear a bit more about the next installment in the “Pikmin” franchise as well.

Activision Blizzard:
With 2010 shaping up to be a strong year for the industry’s largest third-party publisher, expect to see plenty of details about the next “Call of Duty” game – due this fall. Titles from the Blizzard side of the house – including “Starcraft 2″ and the upcoming “World of Warcraft” expansion – won’t be on display, though, as the company will unveil those at a separate event later this year

EA:
The reboot of the “Medal of Honor” franchise will be one of EA’s chief focuses this year. It is, at present, the company’s most important game of 2010. While no one expects it to hit the sales numbers of Activision’s “Modern Warfare 2″ last year, investors are hoping for a very solid hit. Look, too, for more details on “Star Wars: The Old Republic,” the massively multiplayer online game that won’t be out until at least mid-2011, if only to keep stoking fan interest.

THQ:
THQ and Dreamworks will announce a partnership at the show this year, which is likely more than a simply licensing deal. THQ may well join the number of publishers creating 3D games, given Dreamworks CEO Jeffrey Katzenberg’s enthusiasm for the technology. The company will also give a progress report on several games key to its ongoing turnaround, including “Homefront,” a first person shooter in which Americans must retake their country after a North Korean occupation. The game may be a dark horse this year in the action genre, which could impact sales of both “Call of Duty” and “Medal of Honor”.

Copyright 2010 CNBC.com