Big news on the hardware front at E3. Microsoft has redesigned the Xbox 360. The new model is shorter and thinner than the old ones. It's been done up in piano black instead of the usual white and grey. Engadget described it as looking like an F-117 stealth fighter.

The biggest differences come under the hood. Vents on the side of the console have been enlarged. Early reviews say the system is far quieter than its predecessors. The slim model also upgrades the wifi to built in 802.11n, replacing the expensive USB dongles from the previous models.

The system comes with a beefed up 250gb hard drive which resides inside the system. Two new USB ports have also been added for additional storage and peripherals, bringing the total up to five.

The new system will retail for $299. All current models will be discontinued, and have received a $50 price drop. An arcade version of the 360 slim is rumoured to launch at a later date. According to Amazon.com, the 360 slim will ship on June 19th.

Unfortunately, the slim does not ship with the Kinect motion system, aka Project Natal.

It definitely looks like Microsoft cooked this up to compete with the PS3 Slim. It's at the same price point. Despite a lack of Blu-ray, it adds significantly faster wireless. Like all 360s, it also retains backwards compatibility with the original Xbox. If you want a 360 but don't already have one, this looks like the version to get.