Xbox Project Natal is actually a 'new console'

Natal to arrive with re-launched, re-branded Xbox, claims bold report - UPDATE

Xbox 360's innovative motion camera, Project Natal, will arrive alongside a re-launched and re-branded Xbox console.

That's according to a bold report on US site 1UP, which claims that the 'new' Natal Xbox will be a slightly upgraded 360, featuring similar hardware but able to support better looking and performing games.

The new box is said to be repackaged and rebranded in order to target at a mainstream audience, and of course Project Natal will come as standard.

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"Make no mistake, we wouldn't be talking about the sort of hardware leap we've seen with Xbox (or most other) platforms in the past, and we're not talking about Microsoft ending one console cycle and starting another," says the report, which suggests that game publishers will be able to support both Xbox 360 and the 'new' console.

The report is backed up somewhat by comments from Xbox strategy boss Shane Kim, who said last week that "the launch of Natal will be like the launch of Xbox 360. It's going to be that big."

UPDATE: Microsoft UK has given us a standard, "we do not comment on rumour and speculation".