Update: No matter what people thought they heard Steve Ballmer say in Chicago, Microsoft is not planning to introduce a successor to the Xbox 360 next year – stated by cnet.

Original: Microsoft’s CEO Steve Ballmer spoke about “the role of innovation in changing economic times” at The Executive’s Club of Chicago earlier on today. However, what took the show, the announcement that a new Xbox 360 will be hitting shelves in 2010.

Ballmer stated openly, during a speech on the recession to those in attendance at the Executives Club in Chicago, that a new Xbox 360 will hit the store shelves in 2010.

The device will come fully packed with technology that’s “really, really, close” to actuality. The console, which was described as having a “natural interface,” will have a built in camera with the ability to recognize movement and voice.

Sounds alot like Natal.

[Ballmer announces 2010 Xbox 360 at The Executive Club Chicago via TG Daily]

At the DICE ‘09 conference, John Riccitiello told the attendees at the conference that the current recession has been ‘a blessing in disguise [so that] we can clear away junk’. Stating that the overall goal from this is that the developers can ’stop sending pointless product to retail stores’. ‘Junk is hard to compete with,’ said Riccitiello. He felt that developers should shift their focus on quality and away from quantity.

‘We did get fat in too many places. It seemed like anyone who could draw a guy with a gun with a crayon could get funded. At least for EA, we got a little too fat, and a little too reliant on where things were,’ he continues. ‘I’m not pro-recession but to quote Rahm Emanuel: never waste a crisis.’

This is a great wake up call for developers atleast they can wake up before it  became too late.