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.

Rumors were swirling around the web last week when 1up.com reported news of an upcoming system, though these rumors were unfounded at that time.  It looks like the cat is outta the proverbial bag now!

Personally, I kinda have mixed feelings about this supposed new system. On one hand, it’s exciting to think of the possibilities that a newer Xbox system will bring to a future generation of gamers. On the other hand, it’s not been all that long since the Xbox 360 released and maybe the power of the current Xbox is good enough and has not been fully realized. In any case, this is exciting news from Microsoft and we’ll be waiting to see what unfolds with eager anticipation.

Source: http://www.tgdaily.com/content/view/42919/118/

UPDATE: I hadn’t seen an article by Kotaku as of this writing but Microsoft’s Aaron Greenberg  was said to have denied the statement by Steve Ballmer that there will be a new system.

“We’re not going to be launching a new console any time soon,” Greenberg said during a phone call today. “I really believe he was speaking about Project Natal.”

“We want to make sure people know that we’re excited about Project Natal,” Greenberg noted, “But we’re barely halfway through this generation. We’re happy with the Xbox 360, so there are no changes from that standpoint. For the time being, we’re really just showing a whole new category of gaming.”

Read the rest here. http://kotaku.com/5296104/microsoft-there-will-be-no-new-console

I really want to believe Aaron Greenberg on this one since it makes sense that a new system would be a little premature for Microsoft and it’s fan base at this time.  But Mr. Greenberg has  been known for denying information leaks, rumors and statements that sometimes ends up being the truth. We shall see in this case and I would like to believe him, since he’s a nice guy.

In case some of you missed it, Jimmy Fallon hosted Kudo Tsunoda, project manager of Microsoft’s buzz worthy Project Natal on his TV show last night. Project Natal is the motion controlled gaming phenom that let’s you the player have fun playing games sans controller. Fallon and his guests, including Kudo had a chance to play two games, including Burnout Paradise. Everyone seemed to love it and Fallon was so excited he asked to take it home with him.

Here’s the segment!