"I confused the issue with my poorly chosen words. There is no news in my comments. Things are as reported after E3. Sorry."

Following Ballmer's mention of a new Xbox 360 in 2010 with a "natural interface," Microsoft product manager Aaron Greenberg chimed in, saying "there will be no new console" and "I really believe [Ballmer] was speaking about Project Natal."

Revealed at E3, Project Natal is an Xbox 360 add-on that packs voice recognition technology and a camera for motion-sensitive gaming. Microsoft has yet to offer a release window for the add-on, though Ballmer reportedly suggested a 2010 release.