E3 has just kicked off in LA and Microsoft was the first of the big names to unveil its new wares. Kinect, formerly known as Project Natal, was one of the main announcements, along with the unveiling of a new improved console.

Although Project Natal was unveiled at last years E3, it was only in the early stages of development. Renamed as Kinect, the motion sensing controller, designed to make you the controller, was officially launched this morning at the opening of the 2010 E3 with a special performance from Cirque du Soleil.

“At Microsoft, we believe fun is a universal magnet, uniting us and connecting us all together,” said Don Mattrick, senior vice president for the Interactive Entertainment Business at Microsoft.

“We believe interactive entertainment is the greatest form of all entertainment, and it should be open and approachable to as many people as possible. It is this belief that led us to remove the last barrier between you and the entertainment you love. By making you the controller, we will transform how you and your friends experience games and entertainment.”

Kinect will launch in the US on 4 November and the rest of the world shortly after. Kinect lets gamers control their console by using movements, gestures and voice. This allows gamers to kick a ball, dance or even watch movies simply by saying “Xbox play”.

A new Xbox 360 Slim was also unveiled at the expo, which is slimmer and quieter than its predecessor. It includes built-in Wi-Fi N, has a 250GB hard drive, headset, HDMI output, USB flash drive storage capabilities. It is expected to retail for US $299.99.