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.

Xbox 360 Slim

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.