An interesting report cropping up on The Inquirer which claims two sources offering two different versions as to the future of backwards compatibility as to be (or not be) included in Xbox 2.
“We are hearing conflicting reports about backwards compatibility of the Xbox 2 hardware with Xbox 1, which appears to be one of the reasons for the delay,” writes The Inquirer. “One camp is telling us that ATI is having a hard time making Xbox software work because of all the Nvidia-specific routines that were programmed in games. Another source is telling us that Nvidia is being more than a little awkward about releasing details of how its chips work to its rivals, and that Microsoft is sitting awkwardly in the middle. The lacerations of pens on paper were rumoured to be coming from the offices of m'learned fiends.”
The same report also claims that the Xbox 2 is about to be “…launch[ed] on January 5 at the Consumer Electronics Show, though this is yet to be confirmed by Microsoft and has basis in only rumour at this time.