At the Executive's Club of Chicago, Microsoft CEO Steve Ballmer let fly in a speech that a new Xbox 360 would be hitting store shelves in 2010.
The new device will be equipped with technology that is "really, really, close" to an actuality. The console, which was described as having a "natural interface," will have a built in camera with the ability to recognize movement and voice.
This, of course, is referring to Project Natal—and it backs up earlier rumors that a new console would debut in the fall. But the question remains, are we really talking an entirely new console here or simply some sort of bundle? As you might recall, Microsoft's VP of Interactive Entertainment John Schappert referred to the Xbox as being "less than halfway done" earlier this month. So, things are a bit confusing at the moment.
UPDATE: Microsoft has responded to the Ballmer statement, reiterating that the Xbox is not even halfway through it's life cycle.
As the Xbox team stated at E3 two weeks ago, we are not even halfway through the current console generation lifecycle and believe Xbox 360 will be the entertainment center in the home for long into the next decade. Project Natal will be an important part of this platform, but we have not confirmed a launch date at this time.