Microsoft announced a new 4GB Xbox 360 ($199) and a Kinect bundle ($299) that will come with the sensor itself ($149.99 standalone) as well as a free game, Kinect Adventures. The former hits stores on August 3rd, while the Kinect and bundle goes on sale this holiday season. Video after the break. Click here for more pictures.

Microsoft’s just announced that a shiny new Xbox 360 Arcade replacement — with 4GB internal flash memory, a matte finish, and built-in 802.11n WiFi — will be shipping August 3rd for $199.99.

[via Engadget]