According to the source, it’s a new Xbox 360, which most likely means a new SKU. I’m pretty sure where they to launch an Xbox 720 in 2010, that most Xbox 360 owners, such as myself, would feel pretty ripped off.

Makes sense considering that MS hasn’t announced an official date or price for the device. Probably so they can make sure they can get this “new” 360 out the door at the same time while also making sure that developers start making games that feature the camera since it’ll be less of a choice if it’s actually built into the deck of the console. This will also force the current install base to pick one up making Natal the rule rather than the exception.

Makes sense though. If Sony got more developers to build games that utilize Blu-ray and the HDD because they’re in the box natively then MS is smart to get Natal into as many homes as possible. The only way to really do that is to stuff the camera into the box so the camera doesn’t become unnecessary like the PS Eye. I’ve had that thing for over a year and have yet to use it more than 3 or 4 times.

Which I think makes it even more frustrating that Sony just totally went to sleep on this. What happened to all that development with the PS Eye? I remember seeing videos of developers making games that allowed you to draw a picture of a tank on a piece of paper, have the PS Eye scan it then later take control of it with natural physics. Sony totally dropped the ball on this one. I don’t care what the magic vibrator can do, Sony’s had a HUGE headstart with body sensing technology but they didn’t capitalize on it.