Source is from ign's article in the e3 news conference. Click here Stating that the xbox 360 will be backwards compatible. I really didnt care about it being BC because i would be lookin to buying xbox2 games when i get an xbox360. MS does listen to their customers and i am very excited, first the hd will be included now it will be backward compatible, now i can trade in my xbox and not fret about the games that i still play. SWEEETTT..