Microsoft today confirmed the release of a $200 redesigned Xbox 360 is on the way.

The new Xbox 360 model will feature the redesign unveiled at E3 last month which includes built-in WiFi and a proprietary plug for the Kinect motion sensor and a matte black finish. (Old Xbox 360′s will use USB for Kinect)

The new model, which will replace the $150 Xbox 360 Arcade model, will also include 4GB of internal flash memory. The model will have an empty hard drive slot, but Microsoft’s product manager Aaron Greenberg tells Kotaku there are still no news on hard drives for the new Xbox 360s.

“The flexibility is definitely there for a hard drive,” Greenberg said, “but at the time being we are not offering any upgrades.”

The Arcade replacement will begin shipping on Aug. 3 in the U.S. Greenberg says that Microsoft will stop producing the Xbox 360 Arcade and other Xbox 360s featuring the original design.

Microsoft also unveiled a new bundle today featuring the 4GB Xbox 360 and a Kinect Kit. The bundle will sell for $300 when it hits in November with the release of Kinect. The Kinect kit comes with the motion-detecting add-on and a copy of Kinect Adventures. Microsoft will also sell the kit on its own for $150.

News of the bundle and the $199 console first broke on Kotaku last month. As did images of the bundle.

“We think (the launch of Kinect) is a market expansion opportunity,” Greenberg said. “We didn’t want to just throw out a standalone.

“Our research shows that the console bundle is going to be the hot item this holiday. But we expect a lot of people to buy the sensor and game offer as well.”

-Kotaku