MS announces new Xbox for UK

4GB 'Arcade' has built in Wi-Fi, 'Kinect Ready'

Microsoft has announced a new, low-end Xbox 360 hardware SKU for the UK.

The 4GB console will become available to consumers on August 20 and will cost £149.99.

Like Microsoft's 250GB Xbox 360 S model - which was launched on Friday - the new console boasts sleek new design, built-in Wi-Fi N, touch-sensitive buttons and a matt black finish.

However, it has just 4GB of Flash memory - although this is upgradeable via the normal HDD slot.

The console is also available as part of a £249.99 bundle with motion-sensing peripheral Kinect.