"Microsoft revealed that the Xbox 360 'will be backward-compatible with top-selling Xbox games.' This non-specific explanation seems to indicate that the changing processors between Xbox 360 is going to make it too difficult to ensure complete compatiblity - however, it's unclear what percentage of Xbox titles will run on Xbox 360."
Check out this guy's amazing blog entry about it:
http://www.qbrundage.com/michaelb/pubs/essays/xbox360.html
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