Microsoft has confirmed yesterday's rumours about a new Xbox SKU, the Xbox 360 Slim, which were sparked by leaked Italian adverts ahead of Microsoft's E3 2010 press conference.

Microsoft's announcement reveals the Xbox 360 Slim to include a 250GB hard drive and built-in wireless N, as well as being compatible with Microsoft's new Kinect controller. The Slim will also feature a fifth USB slot and is reportedly much quieter than previous models.

The release date for the Xbox 360 Slim isn't totally nailed down yet - Microsoft has claimed a US launch of later this week, but the leaked adverts from yesterday suggest a possible worldwide launch. Complicating things further are rumours that the console will be late to Europe and the UK and won't arrive until July 16th.

In terms of price, the Xbox 360 Slim will debut at $299 USD (£199 GBP), the same as the Xbox 360 Elite.

Older Xbox 360 models will be discounted to help drive sales too. The Xbox 360 Arcade SKU will fall to $149 USD, while the 120GB Elite will tumble from $299 to $249 USD, according to VentureBeat.

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