In a recent speech in Chicago, Microsoft CEO Steve Ballmer said that there definitely will be a new Xbox console on store shelves by 2010, despite constant denials by Microsoft executives. The characteristics of Natal were suggested to be housed within the main Xbox console, as opposed to Natal’s original design of being an external peripheral.

Microsoft’s Aaron Greenberg says Natal will be completely compatible with the current Xbox 360 system, and will not need additional auxiliary support to function the XBOC.