Last week, Microsoft chief Steve Ballmer made confusing statements regarding a future Xbox 360 that would release next year, essentially describing a new Xbox 360 stock-keeping unit (SKU) which would come standard with their upcoming motion and voice recognition system, Project Natal.

In a statement to IGN, however, Ballmer admits that he wrongly confused the situation regarding any future plans for a Project Natal/Xbox 360 SKU:

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

Is this a case of ‘No smoke without a fire,’ or is that the end of that?

Tags: microsoft, projectnatal, steveballmer