http://www.gamesindustry.biz/content_page.php?section_name=dev&aid=3645
GamesIndustry.biz has now learned that Microsoft does not plan to provide any backwards compatibility in the next-generation Xenon platform - and indeed, that senior executives at the company don't believe backwards compatibility to be an important feature for consoles.
According to a source close to the project, internal Microsoft figures suggest that only 10 per cent of PlayStation 2 purchasers were interested in the console's ability to play titles developed for the original PlayStation.