The dark satanic rumour mill has manufactured another hell on earth rumour about Redmond's Xbox. Apparently Microsoft is redesigning the Xbox to exploit its forthcoming Project Natal to the full. It is putting together some packages. The new hardware will be announced at E3 in a month's time.

The rumours were started by Surfer Girl Strikes Back and says that the new Xbox 360 will be slimmer. Instead of the white 360 design the new beast will be black to match those flat-panel television sets that are dominating the market. It will also have a new logo.

Microsoft’s announcements are expected to come in the form of two separate E3 press conferences.