Microsoft has fanned the flame of speculation that it's working on a slimline Xbox 360, by retracting an executive’s claim that an announcement will be made before Christmas.

According to a report by Split Screen, Rahul Datta, Microsoft India’s Retail Services Manager, told the gaming website that an announcement regarding a slimline Xbox 360 can be expected around December.

Before you all rush off to place advance orders, it’s worth digging your spoons into a bag of salt because the comment is neither a confirmation nor denial of a slimmer Xbox 360.

However, it’s odd that Microsoft would discredit Datta’s statement by telling Split Screen that his comments were not in relation to a slimline Xbox 360 after all.

So Microsoft will still make an announcement in December - it hasn't denied that. But what is it going to say?

We’ll leave it up to you to make a decision on this one.

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