console is allegedly on the horizon for Fall 2010, to coincide with Project Natal. Let the name-game begin (to reiterate myself I would prefer XBOX 4 but more on this later)

1up.com is reporting on something that I touched on yesterday, a new game console. If 1up's reports are to be true, than a new Microsoft console will be released alongside Natal next year. While it won't be a new XBOX, it will be more like an update. Think DSi to DS lite or PSP Go to PSP.

While the rumor mill is going around as to whether there will really be more meat on the bones (read: better gpu, cpu, and maybe throw in Blu Ray support to boot), but it can be assumed that the oft rumored Valhalla chip will be included. While nothing, even the console for that matter, has been confirmed, Natal would definitely be included in the bundle.

So do we call shenanigans straight away? Many people are calling bullshit on this and let's be honest, 1up doesn't really state any solid sources on this, although if they started to name names, I'm sure Microsoft wouldn't be the source's employer for much longer. While I don't think that it would be too much of a stretch of the imagination, I can't help but be skeptical.