Rumours unearthed by gaming website 1Up suggest that there's going to be a new Xbox console next Autumn, which will include Project Natal's wireless control functionality.

It's going to be more than just an Xbox 360 with a camera, the rumours claim. Instead, it'll be a new console with backwards compatibility for existing Xbox 360 games, in the same way that the Wii plays Gamecube titles.

Microsoft's said to be taking more of a PC-like approach to the development of the console. Upgraded specs mean that owners of the new console would be able to play new games at higher detail levels, whereas owners of the current Xbox 360 would get a downgraded experience.

We're not betting the farm on this rumour being 100%, but the trend for consoles to issue minor updates rather than full upgrades seems to be gaining steam. Especially given the launches of the DSi and DS Lite, and the equivalent PSP upgrades.