Comment Re:Not such a big deal (Score 1) 615
There is one more consideration. Emulating PS1 games on PS2 is easy. There is no API, only a simple OS, and the whole PS1 fits on one chip. XBOX is far more complex, and comes with its own API (Basically DirectX8). To emulat XBOX1 games on XBOX2, they would have to clutter the new API with backwards compatibility. The hardware would also have to be backwards compatible.
This transfers to higher development cost, higher maintenance, less stability, and less flexibility in design of xbox2. I say they scrap xbox1, and let the engineers create a system from scratch. In the end, it'll be a shorter dev cycle, the platform will be more powerful, the games will shine.