http://xbox360.ign.com/articles/996/996216p1.html

June 18, 2009 - Perhaps all those crazy rumors we've heard over the past week were true.

Microsoft CEO Steve Ballmer reportedly spoke at The Executive's Club of Chicago about "the role of innovation in changing economic times" this afternoon. And according to TGdaily, he announced the company's plan to release a new Xbox 360 next year.

The system will be "'really, really, close' to an actuality" and was described as having a "natural interface." There will also be "built in" camera, which is believed to be the Natal device Microsoft revealed at the latest E3

We contacted Microsoft for comment on this and we'll update when we hear anything.

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I might buy that one...

lol built in camera? what if some people have their Xbox in a unit? I don't believe this for once second.

yeah...the build in camera part is suspicious...

he must have meant bundled camera, not built in.
MS is the new Apple :]

I think hes referring to the Xbox 360 Natal as a new console. Perhaps theres some truth to the rumours of an updated system but its hard to say at this point whether Xbox 360 + Natal = New console or Xbox 360 + Updated hardware + Natal = New console.

There's no way the camera will be built in. People put their Xboxes in their entertainment centers or beside the TV, not directly below, in front of, or behind it.

All this means is that new 360s will come bundled with Natal and their dashboard will come equipped with the ability to navigate via hand movements like they showed at E3.

Current owners will be able to buy the camera separately and simply download a firmware update.

The only actual news here is that Natal is indeed coming in 2010.

wouldnt the camera be the natal?

• PSX --> PSOne
• PS2 --> PS2Slim
• PSP --> PSP Go
• Nintendo DS --> Nintendo DS Lite --> Nintendo DSi

I guess it is just a normal thing to "upgrade" you console these days. I could see it happen, but just like the consoles I mentioned. This won't be a totally new console, just a modified one.

Why would this be so hard to believe? It would be well past the time a slim version should be coming out anyway.  Besides they would probably keep at least one version without the camera for people who have their xbox in entertainment centers etc....  It would be nice having everything built in together so you wouldn't have to clear out yet another spot for electronics (as long as its close to the same size as a regular xbox 360).  

While I like the idea, I will treat this as everything else until its confirmed with a grain of salt.

The only problem I see is why they would update the console if Natal works with older 360. Maybe they just mean a "slim" 360.