So much for the denials Microsoft’s PR folks have been doing the last few days, as Microsoft CEO Steve Ballmer confirmed that a new Xbox 360 will be released in 2010. Ballmer revealed the news during a speech at The Executive Club in Chicago. Ballmer stated that the new console will have built in camera and a revolutionary new interface.

It’s almost certain that he’s talking about “Project Natal”, which was revealed at E3. As for the “new console”, it most likely means a new version of the Xbox 360, with some updated internal hardware (like 45nm parts of the CPU and GPU).