"Recent stories in the press about future Xbox products are nothing more than pulp fiction. Microsoft hasn’t made any announcements regarding the next generation, so it’s far too early to speculate about specifics, including backward compatibility. In fact, this media conjecture is irresponsible. The credibility of any publication willing to compromise fact in favor of a catchy headline must be questioned. Xbox fans are smart enough to distinguish truth from sensational reporting."
Now as you can see, Microsoft isn't saying that Xbox 2 will be backwards compatible. They are probably still trying to make up their mind on the matter. However using a different CPU platform might make it impractical to try and implement adequate backwards compatibility.
Source: Team Xbox
Written by: Jari Ketola @ 22 Jun 2004 15:18