Microsoft has dispelled recent rumours that Project Natal will launch in unison with an upgraded 360

"I think part of the excitement about this announcement is that in many ways we are delivering a next generation experience this generation," Aaron Greenberg, director of product management, told Eurogamer.

"With that said, I can confirm that Natal will run on Xbox 360 so no new console investment will be necessary."

Another "senior Microsoft source" chimed in by warning gamers not to "believe nonsense on the internet."

The rumours of a new Xbox surfaced from a news story by 1UP, which claimed Microsoft would launch a new system similar to the 360 but with "added muscle" to allow for better looking games.