No backwards compatability for Xenon

[Professor S]

“Recent stories in the press about future Xbox products are nothing more than pulp fiction. Microsoft hasn’t made any announcements regarding the next generation, so it’s far too early to speculate about specifics, including backward compatibility. In fact, this media conjecture is irresponsible. The credibility of any publication willing to compromise fact in favor of a catchy headline must be questioned. Xbox fans are smart enough to distinguish truth from sensational reporting.”

This was released by Microsoft in responseto the evident rumor that the Xbox 2 would not have backwards compatability. Now while this doesn't say that the Xbox 2 WILL have compatability, it's also pretty defensive about the whole thing and gives the impression that the Xbox 2 will have it. After all, why would Microsoft get so riled up if it was true? It would just make a bad situation worse.