Xbox 360 will be backwards compatible?

Games Digest reports that Robbie Bach in mîcrosoft's E3 press conference, confirmed that the next Xbox console, the 360, would be backwards compatible with "top selling" Xbox titles. This leaves the door open for mîcrosoft to duck out of full 100 per cent compatibility with the entire Xbox library. Also in the press conference mîcrosoft confirmed many of the leaks over the last few weeks, as detailed here. Xbox Live's basic package (excluding multi-player online) would be free; game demos and trailers would be available via the Xbox Live system, the system will ship in Japan, North American and Europe in 2005; gamers will be able to make, sell and buy virtual items to each other via a "marketplace".

Prize for the hype of the press conference went to Bach and J Allard for declaring they want Xbox 360 to reach "one billion consumers". The current system has sold just over 20 million.