In an interview earlier today, Turbine's Henryk Standberg told Ten Ton Hammer's Cody Bye that Turbine has a console MMO in the works, confirming year-old rumors. And we can quote him on it:
"We are making a console MMO. We've been fairly up front about that, and we think it's the next big space for MMOs."
No word yet on whether or not this project has anything to do with last year's Harry Potter rumors (anyone taking bets?) or what console Turbine is developing for. More when we know more!