This is real 100%. Its actually not all the surprising since the Xbox360 is very similar to a PC and there has been a lot of progress in miniaturisation of PC integrated circuits since the last 3 years. Its a no brainer to combine chipsets and reduce the form-factor by a lot. Expect a Xbox slim and Natal to be revealed at E3 and released in the fall.

It is better to die on one's feet
then live on one's knees







