Sounds like that rumor about a new, smaller Xbox 360 coming next year might have a shorter life than a red-ringing console. Specifying the release of "slimmed down SKU in 2009", Microsoft representative let us know today that "While we don't normally comment on rumors like this, we can tell you that we have no plans to release a new console in 2009". Yep, rumor assassinated, just like that. Of course, there still exists the possibility that Microsoft's just playing coy to prevent a little bit of Osborne effect from creeping in during their heated battle with the PS3 -- but they did go out of their way to directly comment on the rumor, so take it as you will.

We think we've already got a handle on the various chipset revisions planned for Microsoft's too-beautiful-for-this-world Xbox 360*, but it looks like that planned 45nm "Valhalla" combined CPU / GPU motherboard design we've been hearing about might also come in a redesigned, smaller case. That's certainly news to us, but TG Daily has the refresh happening on the same fall-2009 timeline we've been hearing about, so at least all these sketchy rumors line up. We'll see when we see -- it sounds like the 65nm Jasper units are coming off the line for that August release in the meantime to keep us all warm at night.

*Guess which Engadget ed had his 360 go RRoD over the weekend? You only get one try.

[Via Xbox 360 Fanboy]

While our primary gripe with the 360 continues to be drive noise, any improvements to the console that might subdue the impression it's eating our games and heating our continent would certainly be welcome. Microsoft's Jasper 65nm chipset has been in the works for the Xbox 360 for a while, and now reports are coming fast and furious that Taiwanese companies are picking up the contracts for the chips, and the new setup will be sucking down less wattage and pumping out less heat by August of this year. After that attention will turn to the rumored Valhalla, to be built by the same Taiwan Semiconductor Manufacturing Co., which will combine the CPU and GPU into a new super-efficient chip for fall of '09 if these reports are anything to go by.

[Via Joystiq]

Qmotions has been hawking various specialty sports controllers for a while now, but it looks like the company is about to take the next-gen plunge with an upcoming skateboard controller called the Qmotions Big Air for the Xbox 360 -- and best of all, Microsoft is going to let the company build official wireless peripherals. That's an honor Microsoft is pretty hesitant to dole out, but it seems like the ability to wirelessly rip up some Tony Hawk swayed J Allard and co. (We hear Ballmer is a monster in the pipe.) No word on price or game compatibility other than "skateboard games currently on the market," but look for this one to ollie into your heart sometime later this year. Amazing 1992-style animated GIF of Qmotions' PS2 XBoard controller, pictured above, after the break.

[Via Engadget Spanish]

We've been waiting for Harmonix to deliver the promised Xbox 360 wireless Rock Band guitar controller for a while now, and it looks the company is stealthily getting them out there. Pre-orders have been trickling out for about a week, and alert reader Greg just sent us these shots of the controller in the wild at his local Best Buy. Oddly, he says the in-store price is $79.99 while the BestBuy.com price is $59.99, so if you're looking to cut the cord, you might want to save some cash and order online. Oh, and remember -- this bad boy doesn't work with Guitar Hero, so don't say we didn't warn you. One more shot after the break.

Alright, take this one with a huge grain of salt, but MTV News is reporting that Microsoft is secretly developing a Wiimote-like motion controller for the Xbox 360. The source says that the new unit has been under development since August, and that a new unified interface is being developed by Rare, which has missed a few deadlines. The idea is to match and exceed the capabilities of the Wiimote, so the controller reportedly features four face buttons, an analog stick, a microphone, and possibly integration with the Xbox Live Vision Camera. However, it doesn't seem like things are going all that smoothly -- the source says the project is a "colossal clusterf***," and that Microsoft is scrambling to figure out how to get the thing out by the end of the year. Interesting -- but several other major 360 developers wouldn't confirm anything, so until we hear something for real, interesting is about as far as it goes.

If you're suddenly overcome with a feeling akin to déjà vu, go ahead and kill that speed dial to your physician. For the second time in a month, Microsoft has actually come forward to squash a Blu-ray Xbox 360 rumor. This go 'round, an alleged statement from Redmond states quite outrightly that "Lite-On is not manufacturing Blu-ray drives for Xbox 360," and it continues on by noting that "customers who want a premium movie experience [can check out the] library of on-demand HD content" available to console owners. Still, we've grown accustomed to these denials by now, and while you'd think that having a pair of rumors on the matter smashed would put the issue to rest, we've all ideas this one isn't quite dead and buried just yet.

[Thanks to everyone who sent this in]

Those hot/cold "Blu-ray coming to Xbox 360" rumors just cooled off a bit again, with product manager Aaron Greenberg telling Reuters "Xbox is not currently in talks with Sony or the Blu-ray Association to integrate Blu-ray into the Xbox experience". Clear enough? He also dropped the nugget that Microsoft expects to trail the PS3 in sales again in February, but should have things turned around by April, just in time for the GTA IV launch, which should also be right around the time this rumor rears its head again. In the meantime, digital distribution anyone?

Remember that Xbox 360 price cut we mentioned a few days ago? Well it appears that the Financial Times Germany is reporting that this Monday, Microsoft will trim the fat from the Arcade and Pro consoles, shaving €80 and €50 off the price tag, respectively. Of course, right now this is still unconfirmed by the boys in Redmond (or in any other official location), though the buzz in the community does seem to suggest that these cuts are coming. Hopefully if these become a reality, the company will break something off for folks on these shores as well -- we need all the help we can get right now.

Update: See that photo above? it looks like that price cut really is happening. Good news for you, Europe.

Update 2: Amazon UK has jumped on board too.

[Via I4U News; Image via Xbox 360 Fanboy]

We'd already heard about a possible price cut to the Xbox 360, but it looks like that might not be all that Microsoft has in store, as TrustedReviews is now reporting that the 20GB hard drive in the standard Xbox 360 model is about to get the boot in favor of a more spacious 60GB one. That word apparently comes from a "rock solid source," who says that Microsoft wants to get it out the door by the end of its financial year, which comes at the end of June. TrustedReviews also goes into a bit of speculation, saying that Microsoft is "toying with the idea of introducing a new 360 SKU," and that a model with a built-in Blu-ray drive would seem to be "the most logical conclusion," although they say an external drive "makes sense too." While that possibility obviously remains up in the air, TrustedReviews is about as confident as can be with the 60GB Xbox 360 news, saying that you can take it to the bank.

It wasn't all Zune gaming at Microsoft's GDC keynote this morning -- a lot of time was spent discussing Community Games, the new official name for XNA-based games. Amateur devs will get "creator identities" along with their gamertags, and Live members can rate, grade, and discuss your efforts. Of course, as we've heard, games can move from the 360 to PCs to second-gen Zunes, which is definitely pretty cool, but it'll be interesting to see what that means for devs who want to try and take advantage of the 360's horsepower -- will they be restrict their code to a specific platform? While we wait for those answers, it looks like we'll be able to get a taste of what Community Games have to offer right away -- Microsoft announced that the first seven XNA-based games are available immediately, with an open beta to begin in spring and full-on launch by the end of the year. List of games after the jump -- but what are you doing reading this when you could be playing?

Update: We just tried downloading RocketBall and the process is totally different than you'd expect. First you have to download the XNA Launcher, which is under New Arrivals in the Marketplace blade -- but you don't need a membership, so skip that, and the XNA ad that displays points you to the wrong thing, so ignore that as well. Then head over to the Games blade and select Games Library, but don't open the Launcher, cause it'll just kick you out. Instead, press Y to view the list of games and download one. So far the "YouTube of games" seems a bit convoluted -- hopefully the next Dashboard update makes this all a bit simpler.