TG Daily was covering an event where Microsoft's Steve Ballmer was speaking and he went on to say there will be a new Xbox 360
with Natal built in will be out in 2010. It was funny because as soon as I saw the demonstration of the product at E3, I thought to myself why don't they just build a 360 with the front having the cameras for Natal to operate and also offer a USB camera for those that currently have the console. Now having Natal built into the console kind of limits the positioning of the console though and with the setup I have I don't think I have room to put an entire console in the right position for the camera to be effective. I would definitely have to use the external camera with the little space I have in and around the front of my TV. I know Chuck hates new SKU's so I wonder if he's shaking his fist a little right now after reading this.
Update: Major Nelson has put the kibosh
on seeing a new Xbox 360 next year. From what they said on the press conference I'm guessing the camera is going to be bundled with Xbox 360's in the future but not built in.