Microsoft's CEO Steve Ballmer said at an event in Chicago yesterday that their will be a new Xbox 360 in 2010 would have a built-in camera. Clearly Ballmer talks about Project Natal when he says camera.
Kotaku reports that Microsoft's Director of Product Management for Xbox 360 and Xbox Live Aaron Greenberg said that there will be NO new Xbox 360 in 2010.

Who should we believe? My take is that Microsoft is not releasing a new Xbox 360 in 2010, but a Xbox 360 Natal Bundle. This only if Microsoft actually manages to get Project Natal ready for prime time next year.
This Holiday season looks rather boring in regards to the home video console segment. The new motion controllers from Sony and Microsoft are all to be expected earliest next year. So it is back to the good old Nintendo Wii - doing motion controlling since 2006.