The cheaper Xbox One represents a shift in strategy for Microsoft, which originally touted the Xbox One's Kinect as an un-severable part of the console's experience.
Microsoft made the announcement on its Xbox Wire blog on Tuesday morning. In the post, Xbox head Phil Spencer wrote that the company had listened to the feedback of fans to come to the decision.
The Kinect-free version of the Xbox One will go on sale on June 9, the same day as Microsoft's Electronic Entertainment Expo presentation in Los Angeles.
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Microsoft also announced Xbox Live Gold, its $60 annual subscription service for the Xbox consoles, will no longer be required to watch entertainment services like Netflix and Hulu.
The company will still try to entice gamers to sign up for Xbox Live Gold, which is also required for online play, by offering more free downloads of games every month on both Xbox One and Xbox 360, as well as discounts on digital downloads.
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