Enthusiastic Microsoft CEO Steve Ballmer recently sat down for an interview with Gizmodo to discuss future plans for the Xbox 360, and revealed some interesting information about both Natal and Blu-ray functionality.

Ballmer commented about the future roadmap for Natal, following the positive reception given the tech demos earlier this year. Once Natal is released to the public, he states that the plan is to "take [Natal] to the next level; be it on Xbox, or other scenarios." When asked if Natal could meaningfully extend the lifespan of the Xbox 360, effectively challenging the traditional concept of "generational" console-releases, Ballmer coyly replied, "We'll see."

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Peter Molyneux, creator of the Fable series and the Milo demo for Microsoft's motion-sensing Natal peripheral, today announced that Fable 3 will support Natal in some way. The news comes from a BAFTA lecture Molyneux presented today, which was picked up by Gamesbrief's Nicholas Lovell and VG247.

Up to this point, Molyneux had only hinted at the prospect of supporting Natal in the RPG sequel. Both the game and the peripheral are slated for 2010 releases.

With the PlayStation 3 and Xbox 360 both set to receive new motion-tracking controllers next year, it has been revealed that some existing PlayStation 3 software will be updated with enhanced control schemes via patches while Xbox 360 games probably won't.

Though Microsoft has demonstrated the Xbox 360's motion-sensitive Project Natal camera with retrofitted versions of existing titles, such as Burnout Paradise and Beautiful Katamari, project head Kudo Tsunoda told Destructoid that such efforts required a significant amount of code to be changed--presumably more than a patch could.

Meanwhile, rival Sony used Tokyo Game Show to reveal that some existing PlayStation 3 games will be patched to support the upcoming PlayStation Motion Controller, including LittleBigPlanet, PAIN, Flower, EyePet, Hustle Kings and High Velocity Bowling.

In addition, Sony unveiled several upcoming titles that will make use of the wand-shaped ball-tipped device, including an "Alternate Edition" of Resident Evil 5, Ape Escape, Echochrome 2, Motion Party, Sing and Draw, The Shoot and Tower... Read more

With the release of The Beatles: Rock Band just a few weeks out--the music game hits worldwide September 9-- MTV Games manager Scott Guthrie has suggested that the next main Rock Band entry could utilize the Xbox 360's 2010-due Project Natal camera, which provides motion-sensing and voice recognition capabilities.

"The Harmonix development team are working on what is effectively the next game, or Rock Band 3," Guthrie told MCV. "We aren't standing still--we will keep moving into new areas and look at new technologies that our platform holder partners are also developing, such as Project Natal from Microsoft. We're working with them to... Read more

Microsoft chairman Bill Gates now says that his company's motion-sensitive camera, codenamed Project Natal, can also be used in conjunction with a PC.

Gates told CNET that the camera is not meant for only games, "but for media consumption as a whole, and even if they connect it up to Windows PCs for interacting in terms of meetings, and collaboration, and communication."

"Both the Xbox guys and the Windows guys latched onto that and now even since they latched onto it the idea of how it can be used in the office is getting much more concrete, and is pretty exciting," he said.

The chairman noted that future reductions in the cost of Natal will see it migrate to the office environment.

"I think there's incredible value as we use that in the office connected to a Windows PC," he added. "So Microsoft research and the product groups have a lot going on there, because you can use the cost reduction that will take place over the years to say, why shouldn't that be in most office environments."

Following the furor that emerged over Steve Ballmer's apparent declaration that a new Xbox 360 would arrive next year, the Microsoft CEO has issued an apology through outlet IGN:

"I confused the issue with my poorly chosen words. There is no news in my comments. Things are as reported after E3. Sorry."

Following Ballmer's mention of a new Xbox 360 in 2010 with a "natural interface," Microsoft product manager Aaron Greenberg chimed in, saying "there will be no new console" and "I really believe [Ballmer] was speaking about Project Natal."

Revealed at E3, Project Natal is an Xbox 360 add-on that packs voice recognition technology and a camera for motion-sensitive gaming. Microsoft has yet to offer a release window for the add-on, though Ballmer reportedly suggested a 2010 release.

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... Read more

Microsoft has released footage of the live demonstration of its Xbox 360 motion-sensitive camera controller codenamed Project Natal, introduced this week at E3.

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Microsoft has also shared the demonstration of Lionhead Studios' eerie/wonderful/bizarre virtual boy named Milo, here for you introduced by Peter Molyneux... Read more

Microsoft's Project Natal motion-sensitive camera controller for the Xbox 360 is of course best seen in motion, so do enjoy this footage showing smashing and painting games.

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Showcasing the capabilities of the new Xbox 360 Project Natal camera controller, which includes voice and motion-recognition functionality, Fable 2 developer Lionhead Studios showed a video demonstrating a virtual child called Milo.

Able to recognize facial expressions and vocal emotions, Milo chatted with real-life demonstrator Claire. Milo also threw her a pair of goggles (which she automatically grabbed for and then "put on"). Later, Milo grabbed a piece of paper that Claire held in front of the camera for a mere instant.

Another aspect saw Claire splashing around virtual water in real-time.

Studio founder Peter Molyneux boasted that these were concepts even science fiction writers haven't been able to dream up, and that the technology is here, now.

That software will be shown behind closed doors this week.

Vowing that "you are the controller," Microsoft has unveiled a new motion-sensitive controller for the Xbox 360, in the form of a new camera that also provided voice recognition capabilities.

The accessory is code-named Project Natal. Various mini-games were shown in a demo reel, including a tire-changing game, martial arts fighting, skateboarding, a city-smashing missile-bashing Godzilla-like activity.

Voice commands such as "Play Movie" were also demonstrated.

Using the camera, you'll be able to browse the Xbox 360 interface with mere hand motions, video chat with friends, and "scan" your own objects into games.

Visionary director Steven Spielberg then took the stage, explaining... Read more

Rumors of motion controller-related announcements for the Xbox 360 and PlayStation 3 are beginning to propagate once again in advance of E3.

Variety cites several sources in a report that claims Sony is preparing to announce a new motion controller for the PlayStation 3. The purported device uses a webcam and LEDs to achieve an accuracy of motion greater than that of the Wii.

Meanwhile, a tipster writing into Engadget says that Microsoft is readying a full-body motion sensing device. The rumor would see a high-tech sensor bar detecting a full range of movement without the use of an actual handheld controller.

As many motion controller rumors have certainly been proven false in the past, the Shack doctor recommends taking two grains of salt and calling us after the show.