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]

Alex Mercer may not remember if he was a hero or a villain, but do you remember the trailer that was ‘leaked’ a month ago? Well, it looks like that trailer has found its way to CES, in Las Vegas, this year and, as I digress into this matter, that’s not what I’m here to talk about.

At the end of the trailer (shown below), there was a simply advert saying that newest release target for Prototype, which reads ‘Summer 2009′. That’s it. That was the newest release target for the title, but also in the trailer it revealed some powerful, and rather painful, powers that haven’t been shown before, here take a look.

Note: to view video in better quality go here and click in ‘watch in HD’.