When the Durango (game machine) launches, it will not support backwards compatibility for 360 games out of the box. Instead, this functionality will come from the other unit that will be networked with the Durango to provide this (not unlike the DVD add-on for the original Xbox).
Durango itself will also always be onlinelike any other device (correct with rumors), but it will not be a requirement to play local content and it will not prevent playing used games. Putting in an Xbox 360 disc into Durango will prompt the user to attach the supporting device that is sold separately. By separating the two devices and their functions it will ensure price competitiveness for both pieces of hardware.Microsoft’s delay in announcing these products from April goes more inline with not having a physical set of devices to show (among specification updates), which should be ready by May or June when this information is officially released.
I just realized this: People are not likely to buy 360 Disc compatible ad on at the Durango's launch, because they can just keep their 360s. But when that 360 fails in two or three years (because that's what they do...), everyone will pay 100-150 dollars for said ad on...
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