Rumors floating about suggest that Natal will not only come in bundle form, but the console in question will be an updated Xbox 360.
Sources close to 1UP say that Natal is the new console because it will be considered “a new platform and carry a new name (Xbox Natal?)”, with “similar hardware but upgraded, repackaged, and rebranded.”
The unnamed source also stated that Microsoft would reveal the new hardware at GDC next year, with the retail launch taking place during the fall of 2010.
Again, this is a rumor for the time being so keep your skeptic hats on for a bit.