Looks like we are going to be seeing a new Xbox 360 coming down the pipe next year. The news first broke when Microsoft CEO Steve Ballmer spoke at the Executive's Club of Chicago about the "role of innovation in changing economic times" and revealed the company's plan to release a new Xbox 360 next year. In this announcement, Balmer made mention that the new system will have a "natural interface," as well as a "built in camera." Will this be Project Natal's debut? All signs point to yes.

But don't get your panties in a bunch just yet, your old Xbox 360 isn't becoming obsolete. This new SCU is essentially the same tried & true Xbox hardware, just now including this "built in camera." There's also a good chance that the new Xbox 360 system will have an upgraded memory--as it was recently announced that Microsoft would be increasing the internal memory of their Xbox 360 Arcade units to 512 MB.

As of now, Microsoft continues to stand firm that the Xbox 360 is "the entertainment system"--having yet to reach a halfway point to its life cycle. With all intentions for the system to last well into the next decade. With Project Natal being a large contributing factor for the system's entended life period. So expect Project Natal to launch with a bang, making the possibility for an upgraded Xbox 360/ Project Natal bundle seem extremely likely. But for those already in possession of an Xbox 360, odds are that if this "built in camera" is indeed Project Natal then we should expect a standalone release of the motion sensing device on the same day and date as this supposed bundle. Meaning the end of the world begins sometime in 2010.

As more information comes in, we will continue to update you here.