Gaming
Priced at $349 (£176), the new machine, which is currently only confirmed for the US, will be officially launched next month.
Microsoft also confirmed it is cutting the price of its 20Gb console in the US from $349 to $299 (£151), with industry rumours suggesting the system will now be phased out.
In the US, gamers can now choose between the hard drive-free Xbox 360 Arcade $279 (£140), the 60Gb model for $349 and the 120Gb Xbox 360 Elite model at $449 (£226).
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