IGN have written an article that will answer a lot of questions about backwards compatibility on the XBox360. They detail firstly what technology will be used to enable backwards compatibility (i.e. software v hardware), what sort of games are likely to be made backwards compatible and the reason that not all games will indeed be playable on the Xbox360.
[quote]The problem isn't just a matter of picking and choosing from any old game. Since the Xbox 360 and Xbox aren't based on the same chipsets, nor are they using chipsets made by the same companies, making all of the Xbox games compatible with the Xbox 360 is tough. Many engineers have said it's actually impossible. The Xbox 360 was created with an IBM PowerPC based CPU with 3 symmetrical cores running at 3.2 GHz each. It's also using a custom ATI Graphics processor for the GPU.
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