Question: Will Xenon have backwards compatibility?
Answer: This is, by far, the most common question that you guys have been asking. The short answer is that it's still being determined.
From what I've heard (and what several outlets have been reporting already), the original plans were for the system not to have backwards compatibility. From a numbers standpoint, it makes sense. More than a few publishers have told me that the feature isn't nearly as important as enthusiasts think; publishers feel that it's vital for the first year of the console's lifespan at best and only if the launch lineup is weak.
Sources tell me that Microsoft is now considering a backwards compatibility solution, mostly because of the marketing hit the system would take for not having it. It's almost not worth the trouble to omit the feature.
Question: Why is there only 256 MB of RAM?
Answer: The mistake many readers are making is to equate the amount of RAM to that of a PC. A console does not need as much RAM as a PC because it's a specialized device that serves a specific function and it does not need to run a full operating system.
That said, a few developers pulled me aside to tell me that they think Microsoft is upping the RAM to 512 MB.
Question: Will gamer profile information be used for sales and marketing purposes?
Answer: From what I've heard, there will be some opt-in features for gamers to receive information on products they might enjoy. The choice is entirely up to each user of the console and the selection will be saved in the gamer profile.
Question: Will there be 1080i games for Xenon?
Answer: Yes for sure.
Question: Will Xenon have wireless controllers standard?
Answer: More than a few sources have said that wireless controllers will be standard. A few have said that the design is pretty similar to the Type-S controller, but with the black and white buttons placed in a more optimal position.
Question: Since the hard drive is optional, will downloads be stored online or will the hard drive be required for downloadable content?
Answer: Nobody I asked knew anything about Internet-stored content. They all are under the impression that the hard drive will be required for downloadable content.
Question: How much will it cost?
Answer: None of my sources knew the cost of the system. Everyone expects the answer to this to be revealed this May at E3 2005.