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ocnkng said:
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.

Whats similar between an Xbox 360 and a PC? I never got this one. At least its no more similar to a PC than any other console on the market.