They instead included 4gb of integrated storage, however these models retained the new hard drive bay and could easily have their storage upgraded via an official Microsoft hard drive. Later variants of the Xbox 360 S featured a matte black finish and did not include a hard drive. The initial version included an upgraded 250GB hard drive, with limited editions featuring a larger 320GB model. The removable hard drive which was previously located prominently on top of the console was redesigned to be installed internally via a removable section of the grill on the bottom and was no longer externally visible when installed. Despite the much more open airflow design, it was significantly quieter than its predecessor. These factors combined drastically improved the console's cooling ability. The set of two side vents (when stood vertically) were combined in to one much larger intake vent which was relocated to the bottom half of the side panel. It featured an open top and bottom grill where hot air is exhausted, now using parallel slats instead of small holes.

The Xbox 360 S featured a completely overhauled cooling system to combat the overheating problem which caused the Red Ring of Death on previous models. Later models included a matte black finish with gloss black trim, a glossy white finish which was bundled with a matching glossy white Kinect accessory and two Kinect games, as well as several limited edition variants each with their own unique styling. The first Xbox 360 S model featured a glossy black finish with chrome trim. The new design carried forward the Xbox 360 emblems featured on the disk drive and side of the console. The power and eject buttons have also been changed from physical buttons to touch-sensitive buttons with this revision.

Additionally, the controller sync button and IR port were moved to the top of the USB receptacle and the IR port and sync button were combined into one sleek unit. The Xbox 360 S is 17% smaller in form factor than it's predecessor and features significant design changes such as the removal of the two memory card slots featured on previous models as well as relocation of the USB controller receptacle, which has been rotated 90 degrees vertically and relocated to the right side of the face. The Xbox 360 S features a similar but refined design to its predecessor. The model at the announcement was described as being much smaller than past models, featuring a 250GB hard drive and a built in Wireless N 2.4Ghz Wi-Fi adapter, which the original Xbox 360 design lacked. During E3 2010, Microsoft unveiled a brand new revision of the Xbox 360.

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