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Some stray ads have spawned speculation over the past week that Microsoft might soon be releasing a new Xbox 360 Elite with a 250GB hard drive and two wireless controllers.

The ads suggest that the new console is called the Xbox Super 360 Elite. The current Xbox 360 Elite comes with a 120GB hard drive and one wireless controller.

The rumors started last week when Amazon.com's German store listed an Xbox 360 Elite with a 250GB hard drive, two wireless controllers, and Forza Motorsport 3 bundled in the package. It was priced at about $400. The listing was subsequently removed from Amazon's pages.

The very next day, a South African retailer called BT Games promoted the Xbox Super 360 Elite in an ad. It also featured a 250GB hard drive, two wireless controllers, and a $400 price tag.

The Xbox 360 Elite might have a "super" friend soon.

(Credit: Microsoft)

Although it's certainly possible for one listing to accidentally slip out for a product that might not be real, it's extremely coincidental that two listings, from two companies, about the same Xbox 360 model were discovered over two days.

I contacted Microsoft to see if it plans to release the Xbox Super 360 Elite. Rather than saying that it didn't want to comment on rumors or speculation--a common Microsoft response--a company representative said: "Microsoft has made no such announcement."

Microsoft contends that its Xbox 360 Elite is on par with the PlayStation 3 and the new PS3 Slim, even though Xbox lacks several PS3 features, including Blu-ray, built-in Wi-Fi, and free online gaming. When pressed for why it believes that the Xbox 360 Elite's value proposition is high enough, the company said that it's all about games to the gamer.

"Xbox 360 offers double the games library of PlayStation 3, and with Xbox Live, nearly 20 times the number of digital movies and TV shows," a Microsoft representative said in an e-mail. "On top of that, we're bringing even more to the table with instant-on 1080p HD streaming, Facebook and Twitter, and the future of games and entertainment with Project Natal."

Microsoft also asserts that its Xbox 360 Arcade--at $199--captures a portion of the market that its competitors cannot.

"When you're looking to find the best value in games and entertainment, price is really just one piece of the puzzle," the rep said. "However, consumers with $200 to spend this holiday season will still only find one console within their price range: our Arcade console."

Augmented reality--in case you haven't been following, is a technology blending video cameras and computer graphics enabling you to interact with virtual creations in the real world. In practice, it looks like virtual reality crossing over into actual reality. You may have heard the buzzword, but as of late, it's becoming a serious gaming trend. At last week's PlayStation holiday preview in New York, one of the most talked-about titles in Sony's fall lineup was its hi-tech attempt to take on Nintendogs, called EyePet.

While it was definitely one of the most impressive augmented-reality game demos we've seen, it's far from the only one. Here's a rundown of EyePet as well as some other augmented-reality games of the future we're looking forward to playing. And is it just us, or is the angle of most of these titles to "make little animals appear next to you?" Clearly, if this is any indication, get ready for a whole lot more hallucinatory ghost creatures dancing on your coffee tables for holidays to come.

Eyepet (Sony, PlayStation 3)
Sony's been quietly leading the pack in U.S. augmented-reality game development, starting with 2007's bold but unsuccessful trading-card battle game Eye of Judgment. Although interactive PlayStation Eye software has been available on the PSN Store that achieves other AR effects, EyePet is their first major push at a mainstream home entertainment product. ... Read more

Microsoft's Project Natal has some real promise. It could transform the video game space. It could even catapult Microsoft to the industry lead.

Microsoft is so excited about that possibility that Phil Spencer, head of Microsoft Game Studios, said in a recent interview with MCV that Project Natal will make gamers think that it's a new generation.

"When Natal comes out, it will feel like a new generation has arrived," Spencer told the publication. "I see it as like the launch of the Xbox 360 back in 2005--there will be a launch portfolio of games to support it."

It's a lofty hope. Project Natal is still very much a question mark in the video game industry. It might be a huge success. Or it might be a major failure that didn't live up to the hype.

If it's the latter, Project Natal would follow a long list of video game ideas that never quite made it. Let's take a look at some of the most prominent of those failures.

Our good buddy Russ Frushtick of MTV Multiplayer (formerly of UGO) comes onto the show today to talk shop and give us the inside scoop on Project Natal, "Ghostbusters," and the Nintendo Wii Motion Plus.

Russ of MTV Multiplayer

(Credit: CNET/Dan Ackerman)

We're always stoked when Russ Frushtick drops into the studio because he always brings us the best news, and today is no different. Russ recently accepted an offer to work at MTV Multiplayer as the only guy covering video games! Now that he's the head honcho, we feel extra special that he's willing to talk with us about E3. Granted, E3 was awhile ago, but Russ gives us his take on Project Natal and how he thinks it will effect the industry as a whole. Believe it or not, I'm actually kind of psyched to play the handball game despite how weird I'll probably looking flailing my arms around like a maniac in that 3-foot square. Russ also talks about the Milo demo, where you apparently have to establish a relationship and "connect" with a young boy in order to win the game? Maybe they should've called it "Project Wilson Tang."

After the break, we jump right back into more video game talk. We chat about the a game called Scribblenauts for the Nintendo DS. From how Russ described it, it sounds pretty cool: you just wander around and when you encounter a problem, all you have to do is write in what you'd need to get out of it and the object appears onscreen. And the game has 10,000 words you can write in! Listen in for more details about Prototype and a hilarious rant about the Wii MotionPlus.

EPISODE 367

(Credit: Engadget)

A few days ago, we reported on a rumor going around that there would be a new, upgraded Xbox 360 in 2010 that would incorporate Microsoft's Project Natal technology. Well, we didn't expect Microsoft to come right out and tell us a new one was coming--and a few Microsoft execs did indeed deny that a new 360 was in the works. But a few blogs are reporting that CEO Steve Ballmer let word of new Xbox 360 slip out in a speech he gave Tuesday at the Executives' Club of Chicago.

TG Daily was the source for the original story, and I have to say the quote sounds pretty dubious.

"Rumors can be confirmed," the article declares, "as Ballmer stated openly during a speech on the recession to those in attendance at the Executives' Club in Chicago, a new Xbox 360 will hit the store shelves in 2010."

The only problem is the quote that follows this quote is rather ambiguous.

"The new device will be equipped with technology that is 'really, really close' to an actuality. The console, which was described as having a 'natural interface,' will have a built-in camera with the ability to recognize movement and voice."

Read it a couple of times and it's really pretty unclear whether Ballmer was talking about a new console or just the concept of Project Natal. We're betting he was talking more about the new technology coming to fruition in 2010 and not necessarily a whole new Xbox 360.

But that didn't stop both CrunchGear and Gizmodo from posting entries with the headline, "Ballmer confirms Project Natal Xbox 360."

Now, there's nothing wrong with a good, attention-grabbing headline (I'm a sucker for them). But we're going to proceed a little more cautiously with this one and await word on whether Ballmer really let it slip--or whether something got jumbled in the translation.

Comments?

(Source: TG Daily)

Update: While Microsoft reps are still trying to figure out just what Steve Ballmer said (they've requested a transcript of the event), Aaron Greenberg, group product manager for Xbox 360, said there would be no new XBox 360 for 2010 and he reiterated that Project Natal would be compatible with all existing XBox consoles (no new hardware except the camera will be required). However, that doesn't mean Microsoft won't continue making tweaks to the XBox 360's components, upgrading chips and other parts as it's already done.

Microsoft passed on this statement to me regarding this post:

"As the Xbox team stated at E3 two weeks ago, we are not even halfway through the current console generation lifecycle and believe Xbox 360 will be the entertainment center in the home for long into the next decade. Project Natal will be an important part of this platform, but we have not confirmed a launch date at this time."

Brian Tong, host of CNET TV's The Apple Byte, finally makes the trip out to New York for the sole purpose of helping us host the show. Alright, we wish--in reality Brian is out here for a much nobler cause. Today's show is filled with everything you'd expect from Apple fanboys and video game nerds!

(Credit: Brian Tong)

It's always an insane show whenever Brian Tong of CNET TV's The Apple Byte rolls through the studio, and today is absolutely no different. Although we'd like to think that Brian is here just because he loves us so much, it turns out that his trip is for a much greater cause: The big Moon personally invited him out to speak on a panel in front of CBS interns about what it's like being a minority in the media, something that Wilson and I definitely could have spoken about, but clearly CBS wanted a positive influence on the kids. Unfortunately, Brian finally drops some bad news when he tells us that these 13-year-olds are already vying for all of our jobs.

In today's episode, Brian gives us a rundown of his sojourn to E3 and all the recent video game news coming out of the pipe, including Project Natal, Xbox 360 rumors, next-gen console forecasting, and everyone's favorite Nintendo Wii vitality sensor! I wish I could remember what else they were talking about, but I blacked out (on purpose) just as they started talking about E3. Much thanks to B-Teezy for getting up early to do the show!

(Credit: Engadget)

Take this one with a grain of salt, but gaming site 1UP is reporting that it's hearing a new Xbox 360 is in the works and is set to be released next fall in conjunction with the release of Project Natal. That in itself isn't all that newsworthy since it seems pretty logical that Microsoft would put out a new console with the release of its fancy new, you-are-the-controller technology that was demonstrated at E3 this month. However, 1UP is saying that while the new Xbox 360 will carry a new name and be a "new platform," it won't necessarily be much of an upgrade over the existing 360.

Here's the full quote:

"It's not clear what sort of upgrades we might see, but some have suggested it will be a slight upgrade of the current Xbox 360 technology. Current Xbox 360 games would be playable on it, but future games would be able to take advantage of the added muscle."

The article also adds that, "Games played on the more advanced Xbox would look or perform better, but publishers will still be able to support owners of both systems."

Again, this all makes sense, and you'd expect Microsoft (and possibly Sony) to have some new hardware a year from now. But it will interesting to see how Microsoft manages gamers' expectations and the sales of its consoles as it gets closer to releasing Project Natal. It's also important to note that Microsoft has said the new technology will work with existing Xbox 360s so long as you add the new video camera accessory.

How much credence do you think this rumor has? And if Microsoft is indeed going to release a whole new Xbox 360, what do you think it should be called? Xbox 360 Natal doesn't have the greatest ring to it.

(Source: 1Up via Engadget)

Yeah, this episode's intro gets weird.

It's a game game game game game game world this week as E3 has inspired us to dedicate this show to gaming.

Dong thinks project Natal is really cool, but feels talking to real people on the street is more interesting than talking to a 10-year old virtual boy who is just the first step in Skynet's eventual world dominion.

Later, I share my love for all things Bioware, past and future, including Dragon Age: Origins and The Old Republic and why these days, games can get away with things that movies cannot. Check out on this Dragon Age trailer to see what I mean.

Also, there's iPhone, PSP Go, DSi, and Zune HD talk. Well, maybe not "talk" but we do mention those at some point during the podcast...I think.

To subscribe to this podcast, visit us at our main page and click the podcast link on the right. Don't forget to leave us voice mail at 1-800-947-6399 or e-mail us at insidecnetlabs@cnet.com.

Listen now: Download today's podcast

Natali Del Conte makes her triumphant return from E3 and joins us on today's show. After suffering through two years with an HTC Mogul, Jeff finally upgraded to the Palm Pre this weekend. Tune in for Jeff's personal review as well as some unfortunate news that has us all reeling...with laughter.

(Credit: Jeff Bakalar)

All right, first thing's first: NATALI DEL CONTE. That should be enough to get you guys to listen to today's show. She's finally back from her Tour de California. She was actually at E3 this past week and she gives us the scoop on her first impressions of the event. Actually, it turns out that Natali's been taking some gulps of Jeff's unique brand of Haterade! It's always a pleasure to welcome Natali back to the show, even though she's crossed over the dark side. Welcome home, girl!

We've been talking about the Palm Pre ad nauseam for weeks now leading up to Saturday's release, and Jeff actually woke himself up before the crack of dawn and picked one up. Be sure to listen to the whole episode to hear about the fiasco that happened in line, it's unbelievable, and kind of funny. Pix or it didn't happen, Bakalar! After all that happened, Jeff successfully picked up a Palm Pre, and he loves it! All his contacts from Facebook, Gmail, etc...are now consolidated; music transfers are easy thanks to iTunes (fingers crossed that Apple shows mercy); and the keyboard is surprisingly easy for Jeff's ham shank fingers. Sadly, though, there's one very significant, deal-breaking, horrendous manufacturer's error that needs to be correctly immediately before Jeff turns back into a pumpkin and we lose him forever. Tune in to hear more about this awful glitch and how you can fix the problem!