Microsoft CEO Steve Ballmer said yesterday that a new Xbox wil be released in 2010, but was later contradicted by Microsoft's Xbox division

Ballmer made the announcement while speaking at The Executive Club of Chicago where he touched on a number of economic issues and problems facing Microsoft during the recession.

The executive said that the new Xbox will have a "natural interface", a built in camera that can recognise voice and movement, and will launch in 2010.

The internet, of course, exploded, causing Xbox execs to rapidly deploy some damage control.

“I can tell you that we are not launching a new console in 2010,” Xbox product boss Aaron Greenberg told Destructoid.

“We’re not going to have to require customers to reinvest in an entirely new platform,” he said. “We’re able to add [Project Natal] on top of what’s already there.”

Xbox Live's Major Nelson also chimed in on his blog.

"We are not even halfway through the current console generation lifecycle and believe Xbox 360 will be the entertainment center in the home for long into the next decade," he said.

"Project Natal will be an important part of this platform, but we have not confirmed a launch date at this time."

This all comes after a rumour last week that Natal will launch with a new Xbox, which was quickly refuted by Microsoft.

Right arm meet left?

Actually, It sounds to us that Ballmer was merely referencing the launch of Natal, and not a brand new console.

You have to take into account the context of the "announcement", as it wasn't at a videogame-focused event or specifically targeted to the videogame press, it was directly more at the business community who may have not even been aware of Natal's E3 reveal.

Perhaps Microsoft have a slightly upgraded 360 in the works to coincide with the Natal's launch, but we doubt that you'll see a new generation console in 2010.

In fact, it wouldn't make much business sense for Microsoft to do so, as Natal in itself has the potential to boost the 360's lifespan by a considerable degree.