Backwards compatibility? Problems!

BBC NEWS | Technology | Xbox 360 kicks off console wars: "What is not known is if gamers will be able to play current Xbox games on the 360. The price of the console has yet to be announced but some speculate it could go on sale in the US for $300 (�162).

Microsoft is aiming for what is called backwards compatibility but is facing technical difficulties."

If this XBOX isn't backwards compatible we'll see the Osbourne Effect. They'll cut the feet out from current XBOX sales and game development but not have enough titles to draw new existing users to XBOX 360. They'll freeze their customer base and negate their early to market lead with XBOX 360.

Gates is Mr. Magic. MS uses him to preannounce products and ruin the market leaders's advantage. Well, MS is trying to freeze Sony PS2 users with this shiny new XBOX360 and then win them over when XBOX 360 ships. WITHOUT backwards compatibility in XBOX 360 they will fail.

Sony says the PS3 is backwards compatible with PS2 so game sales and development will continue strong well into 2006. XBOX has to leverage their smaller installed base. Cutting and running will kill them.