New Xbox 360

Microsoft will release a smaller, redesigned Xbox 360 console in Australia on July 1 featuring built-in wireless networking support and an internal, removable 250GB hard drive.

Don Mattrick, Xbox Senior Vice President, says the new console is "sleeker, smaller and whisper-quiet". It will cost $449 in Australia.

Microsoft's unveiled the redesigned machine at its press conference today at the Wiltern Theatre in Los Angeles, the first official event of this week's Electronic Entertainment Expo (E3). E3 is the biggest annual event on the world's gaming calendar.

The 90-minute presentation was evenly split between hardcore games designed to keep existing Xbox 360 fans glued to their consoles, and new motion-sensing games for the Kinect add-on, which Microsoft hopes can attract a wider audience to their system.

Kinect, which was previously known by the code-name Project Natal, will launch on November 4 in the US and before Christmas in Australia. Around 15 titles will be available at launch.

“For lots of people, that controller is a barrier,” says Microsoft creative director Kudo Tsunoda. “We set out to make a new control paradigm where anybody can get in and play, without having to read the instructions or learn a complicated set of controls.”

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In my opinion, the Kinect seems like a way to cash in on Nintendo's success with the Wii. The Wii is extremely popular with whole families and younger kids and this is different target is what i think led to its success. For this reason both microsoft and Sony are trying to copycat Ninendo's moves to stay in the competition. But, Microsoft's new console looks absolutely awesome.

COLOGNE, Germany (Reuters) - Sony Corp will launch a slimmer, cheaper version of its PlayStation 3 game console next month, hoping to jumpstart sales and win back market share from rivals Microsoft and Nintendo.

Starting in September, the latest, less bulky version of the PS3 will be rolled out at $299 in the United States, 299 euros ($422.7) in Europe and 29,980 yen ($315.6) in Japan, the company said on Tuesday.

That represents a major price cut from the existing PS3 models, which runs between $399 to $499 and have proven less popular than Microsoft's Xbox 360 and Nintendo's Wii.

"The main thing is that there is a significant price cut," said Ed Barton, analyst at Screen Digest. "We have argued since the beginning that there must be a substantial cut and this is a positive development."

Sony's new PS3 comes with a 120 gigabyte hard disk, but consumes 34 percent less power than the original model and is 32 percent smaller, Sony Computer Entertainment Chief Executive Kazuo Hirai said at the Gamescom video game trade show in Cologne, Germany.

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