Sources inside Microsoft are currently downplaying our
rumor that Natal would be part of an Xbox rebranding effort next year, but the devil is in the details. To Eurogamer, Aaron Greenberg
said, "I think part of the excitement about this announcement is that in many ways we are delivering a next generation experience this generation. With that said, I can confirm that Natal will run on Xbox 360 so no new console investment will be necessary." Another unnamed Microsoft source claimed, "Don't believe nonsense on the internet is all I'll say. We'll do the right thing for Natal." The rebuke seems harsh, but it really doesn't contradict the idea of a relaunch. While we believe the next Xbox 360 will add some muscle and include Natal, those looking to simply upgrade their current machine could buy Natal by itself. Greenberg pointed out that a new console investment will be unnecessary, not
unavailable. This seems backed by
rumors from VG247 today, having heard chatter of a "new SKU design" that is "along the lines of PSone or PStwo," along with word of a possible rebranding effort.
Microsoft keeps comparing Natal to the scale of a new console launch, and upon presenting it at E3 said outright that it would allow new experiences "without having to launch a new console." It seems clear that Natal is Microsoft's way of extending this console generation, but a slight upgrade and SKU rejiggering certainly wouldn't compromise that plan. For more details and to hear a longer discussion of what we think Microsoft plans to do with Natal.