It's no secret Microsoft does periodic hardware revisions to the Xbox 360 that are meant to fix bugs, improve performance and lower production costs. Usually these updates go unannounced, and never have they involved a change to the console's form factor since its 2005 release. But with project Natal coming up later this year it seems the company might be considering releasing something We'll just have to wait to see how these rumors pan out, but considering the success Sony has seen with its PS3 Slim, a new hardware redesign could certainly make a lot of a lot of sense for the Xbox 360 before the end of the year.