Microsoft has down-played rumours suggesting that the launch of Microsoft's Project Natal will come with a brand spanking new "Xbox 720" console
Microsoft's Aaron Greenberg (director of product management for Xbox 360 and Xbox Live) told Eurogamer that, "I can confirm that Natal will run on Xbox 360 so no new console investment will be necessary."
Another 'senior Microsoft source familiar with Project Natal' apparently said, "Don't believe nonsense on the internet is all I'll say. We'll do the right thing for Natal."
While clearly those statements are both attempts to play down the rumour, you'll notice that, in gloriously PR-friendly style, there was no firm denial in there. Natal will run on the Xbox 360, but that doesn't necessarily mean there won't be a new console that runs it, too. Of course, it doesn't mean there will, either.
The new console is rumoured to be due next Autumn. While it will reportedly be a new system, it apparently won't be the same kind of leap we've seen between previous console generations.Source: Eurogamer