Yeah, people spread BS daily. They might be working on a new console, possibly, but it would probably be R&D currently. There is no need for a new console yet, as stated.
They're always working on something, they don't just sit around and wait. They test the newest things out at the time and if there is some new technology they'll switch their tactics or whatever. Microsoft is probably working with BluRay right now.
EDIT: Only 2 hours until the 2 week countdown mark!
I can't see them working with Blu-ray, personally. And if they do, they're stupid. First off, they'd get a lot of shit about "copying". Second off, it's an expensive medium as it is that isn't even needed yet. Besides, Blu-ray is about to eat it's own shit.
Spaz why do you hate blu ray and Sony its obvious you love Microsoft. Face the facts the PS3 is the tomoorows console but the 360 is yesterdays console.