For those angry about the lack of native backwards compatibility on the new xbox: The hardware configuration for both of the next-gen systems has changed dramatically to make them more friendly to develop for. Since the games for both the 360 and the PS3 were developed and optimized around the specific hardware configurations of those systems, it makes sense that the new systems will not be able to play the old games. The way the console manufacturers have gotten around this in the past is to do one of two things: either 1) put the hardware for the old system inside the new system, or 2) use software emulation, which will not work with every game. Including a PS3 or 360 inside of the new systems in order to keep backwards compatibility would not be feasible for the manufacturers. Not only would this increase the cost to make the systems substantially, but it would also increase the size of the systems as well. Software emulation would basically mean that the system is creating virtual hardware. That is, it would literally simulate the way the old systems would behave. Many people are familiar with using emulators to play classic games on their computer, and have no doubt noticed that emulators for systems of the current generation, or even the generation before, are surprisingly taxing on the computer. This is because of the power needed to simulate the old hardware. The 360 uses software emulation, which is why a download is required to play original xbox games, and why not all of them will work correctly. Emulators, even the best ones, will not be able to play every game, and getting games to run on them often requires quite a bit of work on the developer's end. It appears that Microsoft has decided to go with hardware emulation, but externally in the form of the Xbox Mini. This system is literally the hardware of the 360, minus the disk drive. By hooking it to the new system, it is able to use the disk drive of the new system to run games on the hardware of the old system. Separate from the new system, it would still be able to use the Xbox LIVE marketplace, access Games on Demand, and Arcade titles. It seems like a good compromise. Those that have a library of 360 games will be able to either keep their 360 or grab the Mini for what seems like a decent price (considering the wifi adapter for the 360 was $100 by itself). Those that don't have a 360, but may want to get the older games in the future will be able to grab the Mini by itself, or grab a used 360. It doesn't seem any worse than Sony's approach of offering some games through digital download for purchase, which appears to be software emulation. I don't know if it has been made clear whether or not games that you already own will have to be repurchased to be playable on the PS4 or not.