Based on a few sources, Microsoft will be using the same multiple model/SKU strategy for their upcoming next generation Xbox system with the same goal of the cheaper model missing a lot of features and the expensive model being considered the premium or ideal choice.
In terms of backwards compatibility, it appears Microsoft might only be offering limited compatibility once again due to the cheaper model rumored to be missing the disc drive and being created more as a set-up type box. The cheaper model would focus more on multimedia aspects of the next Xbox system (ex. Netflix) while the premium model could offer either the same patch type of support the Xbox 360 did for original Xbox games or include an Xbox 360 chip to play Xbox 360 games.
In terms of Kinect, the company might be downplaying the role of the device for the next system from being the main focal point to being limited to just the cheaper model version. It is also assumed the cheaper model will only be able to play Xbox Live Arcade titles while the premium model will play both disc and downloadable games while also allowing installing of games on the hard drive.
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"It's...believed that Microsoft will continue its successful two SKU strategy", the story claimed, "and indeed take it much further with its new platform: a pared down machine is to be released as cheaply as possible, and positioned more along the lines of a set-top box (the use of 360 as a Netflix viewing platform in the US is colossal) and perhaps as a Kinect-themed gaming portal, while a more fully-featured machine with optical drive, hard disk and backward compatibility aimed at the hardcore would be released at a higher price-point."
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http://kotaku.com/5862439/next-xbox-...e-current-xbox
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Daily Recap:
1) The teaser trailer Bioware will show next month during Spike TV's VGA award show is currently rumored to be a brand new or potential reboot Command & Conquer game.
http://www.screwattack.com/news/new-...ommand-conquer
2) A sequel to EA's Dante's Inferno game could be under development after it was revealed Visceral Games hired the writer for Assassin's Creed 2 to work on the script for an upcoming "unannounced sequel" project.
http://www.screwattack.com/news/dant...-sequel-teased
3) Based on a leaked internal memo sent, Gamestop (or at least just the Canadian branches) could be in the process of merging their used game sections with their new games section involving the use of new game labels for used games and mixing the used games with the new games on store shelves.
http://kotaku.com/5862094/eb-gamesga...-games-section