Well well well, what do we have here? A quote from Microsoft's CEO Steve Ballmer over at TG Daily that make it seem as if those 1up rumours could be true after all. Just to refresh your memories the 1up rumour was stating that a new Xbox console would be launching along side Project Natal.

Take this with a BIG grain of salt; Steve Ballmer spoke at The Executive's Club of Chicago overnight and TG Daily was live blogging the event, they sated that Ballmer openly announced that a new Xbox 360 console will launch in 2010. The console will have a built in camera with the ability to recognize movement and voice and has been described to have a "natural interface."

This is very interesting; will this be an upgraded 360 with more ram and a slightly higher clock speed and the games being released at launch compatible with both consoles? Or could it just be the long rumoured 360 Slim with a change to the NXE to allow full control with Natal?

Let's just hope they don't build the camera into the 360 forcing people to have it in view if you want to play it. This console generation just got that much more interesting.