Update: Microsoft has flat-out denied that it will release an all-new Xbox 360 console in 2010. "There will be no new console," Microsoft product manager Aaron Greenberg informed Kotaku. "We're not going to be launching a new console any time soon."
Greenberg cited a belief that Ballmer was referring to the upcoming Project Natal add-on for Xbox 360 yesterday, stressing that "we're barely halfway through this generation...we're happy with the Xbox 360, so there are no changes from that standpoint."
"What we're doing that's unique is, instead of asking you to invest in a new generation of hardware, a generation that's already well established, extending the experience even longer by adding this whole new category of experiences with Project Natal."
He further noted that there is no announced release window for Project Natal, but admitted that Microsoft has "looked at" bundling Natal with Xbox 360s in the future.
Original: Microsoft CEO Steve Ballmer today said that a new Xbox 360 will arrive in 2010, according to a TG Daily report citing a speech at the Executive's Club of Chicago.
Ballmer described the device as having a "natural interface" thanks to a built-in camera and voice recognition capabilities, leaving it unclear as to if he was referencing the previously undated Project Natal add-on for Xbox 360 or an entirely new model.
After the unveiling of Project Natal, rumors began suggesting that Microsoft is planning to release an "upgraded" Xbox 360 that would include the add-on. Going by 1UP, these upgrades would enable existing Xbox 360 games to "look or perform better."
Responding to those rumors, Microsoft product manager Aaron Greenberg told Eurogamer that "Natal will run on Xbox 360 so no new console investment will be necessary," though he did not explicitly rule out the possibility of an upgraded model.
We've checked in with Microsoft for clarification, and will update accordingly.