Released June 2010 for $299.00 Xbox 360 S consoles feature redesigned internal architecture with the Valhalla motherboard, which allows for around 30% more space than previous motherboards, and the XCGPU, an integrated CPU/GPU/eDRAM chip using a 45 nm fabrication process. This allows them to be both smaller and quieter than the previous versions of the Xbox 360. They also feature 5 standard USB 2.0 ports (2 more than previous models) and an additional custom USB port for use with peripherals such as the Kinect sensor.
Unlike older models, 2.4 GHz 802.11 b/g/n Wi-Fi and a TOSLINK S/PDIF optical audio connector are also built-in, allowing for digital audio and wireless networking without the need for external adapters. The Memory Unit slots found on previous consoles have been removed in favor of the USB flash drive solution added in a previous system software update (released on April 6, 2010) and the power and DVD drive eject 'buttons' are touch sensitive rather than the physical buttons found on previous models.
The external hard disk drive connector has also been swapped for an internal bay for use with a proprietary hard drive. The hard drive bay is designed such that a specially formatted laptop hard drive may be loaded in. It has been noted that users can also open up the casing of the original model's hard drive and simply load it into the drive bay instead of purchasing a hard drive branded for use with the new model.