Rumors concerning a new, smaller Xbox 360 console (called Microsoft Valhalla) have been spreading out in the past, but, until today, there were few reasons to believe that this is true, other than the fact that a response to the PS3 slim should come out sooner or later.
Today, Kotaku has published a photo that seems to be representing the mainboard smaller Xbox 360 that people have been talking about lately. And there are several reasons to believe that this is no fake photo.
First of all, the controller chip that reads “Microsoft Xbox 360″ is a bit hard to fake. If you add the fact that the mainboard layout is unlike anything seen before and that the Xbox 360 standard I/O ports are there (granted, they have been shuffled around, but since the Microsoft Valhalla Xbox 360 is smaller, it should come out with a new case), chances are this mainboard is for real.
As far as the Valhalla Xbox 360 release date is concerned, you can only imagine that nothing was officially announced, but given the fact that Project Natal is scheduled for release in late 2010, Microsoft might decide to release both new projects alongside eachother.