Microsoft has announced a new Xbox 360 model at its E3 press conference today. The new model will be smaller and quieter than the previous Xbox 360 S slim model.

The new model is shipping to retailers worldwide today. It will be available in 4GB, 250GB and 4GB Kinect bundle editions, at the same prices as the old model.

"Sporting a sleek and stylish new design that resembles the Xbox One brand elements," claims Microsoft, "the new Xbox 360 brings together a similar look and feel across the entire family of Xbox products."

Microsoft also announced that it will be rewarding Xbox Live Gold subscribers, who will begin to receive two free games per month between 1st July 2013 until 31st December 2013.

Assassin's Creed 2 and Halo 3 were shown as two games coming in the first months of the programme, and Fable III will be given as a free download in June to celebrate E3.