“Sources close to the firm have confirmed this week that there’s much talk of two distinct price points, which seems to indicate that this is still the plan for launch – while a report on well-connected gaming blog Kotaku gives an indication of how the two different models will be differentiated.
The site reports that the basic edition of Xbox 360 – the version without the hard drive – will not have backwards compatibility, while the “premium” version with the hard drive will ship with Microsoft’s WebTV functionality built-in.”
Our thoughts are that it would be foolish to leave backwards compatibility out of the low-end version. Not everyone is going to want to browse the web with their Xbox or find a need for the advanced features that the high-end version has.
Read more at Gamesindustry.biz