thought this was of interest:
http://ga-forum.com/showthread.php?t=976&highlight=allard+backward+compatability
Are you looking at backwards compatibility for Xbox 2?
Allard: Of course we look at it. What most gamers tell you though that what they want is new experience. Sony will trump that up as a huge feature. That's not why Sony won this generation at all. Let's be clear, the reason that they got off to such a good start was they played DVD movies and it was cheaper than any DVD player in Japan.
That's how they sold the first million units. It wasn't even the games, and the fact that they weren't contested - there was no competition for 18 months. It gave them a great headstart.
It wasn't backwards compatibility. The one thing that it gave Sony in the early stages was that it gave them a library. They had had really crappy games for the first six months, or twelve months, as people were trying to grapple with the hardware. There was really nothing worth playing.
So, like we did with Xbox one, we're going to focus on a killer launch line-up, and I think we'll have an ever better line-up for the next-gen than we did this time. If you have that, then what do you want to play?
Would backwards-compatibility add a lot of expense to the unit cost?
Allard: Well, if nothing else, it incurs complexity, complexity and focus. And do I want to make a huge compromise there? Not if I don't have to. You've got to do what gamers want, and if they say that that's really important, we'll do it. Like DVD movie playback; that's important, we've got to do it. I don't like the fact that I've got to spend money to do it and I have to devote resources to do it, but gamers have said that's an expectation for the console - do it.
They say it, we'll do it, but we're really going to make sure we ask the questions the right way, because it is a distraction for us and our early research suggests that it's not that important, but we'll see how it goes.
http://ga-forum.com/showthread.php?t=976&highlight=allard+backward+compatability