Microsoft big wig Steve Ballmer has played down the significance of his words at last week's Executive Club of Chicago bash - at which he implied a new version of the console will be released in 2010.

"I confused the issue with my poorly chosen words," the big chief admitted to IGN. "There is no news in my comments. Things are as reported after E3. Sorry."

Ballmer's poorly worded comments came as speculation ran wild that were considering the release of a new Xbox SKU alongside the system.

The platform holder have, however, since assured that current 360 owners will have no problem using Natal - and that while the launch is significant - it won't see the arrival of a third iteration of the Xbox.

By Luke Guttridge