Not much of a surprise, since we've been seeing this Xbox 360 cam here and there since before their MTV launch, and even saw the unit laying around the Xbox HQ during our recent tour, but it's being rumored that Microsoft is getting ready to release a big update for Dashboard to squish a bunch of system and game bugs, and to bring support for a camera accessory which will supposedly be released simultaneously with the update. No word on Microsoft's exact plans for the camera, but hopefully we'll see some EyeToy-esque functionality so that Sony fanboys won't have to be the only ones looking like fools in front of their TVs.

[Via Xbox 360 Fanboy]

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Xbox 360 camera to debut soon alongside Dashboard update?