The recent rumors suggesting a new, beefed up Xbox console which will be bundled with Natal has been circulating all over the Internet. Microsoft has denied the rumor, with company spokesman Aaron Greenberg saying (in the usual corporate tone):

“I think part of the excitement about this announcement is that in many ways we are delivering a next generation experience this generation. With that said, I can confirm that Natal will run on Xbox 360 so no new console investment will be necessary.”

Natal will most likely be released in Fall of 2010, which would also make sense to update the Xbox 360 hardware. Perhaps not with more powerful, but at least a smaller system, an “Xbox 360 Slim”, if you may. On the other hands, there might be a whole new console, since you should “never believe anything until it has been officially denied”, as the old saying goes.