The backwards compatibility isn’t quite as big as the hard drive since the XBOX has a hard drive and XBOX Live stored on the hard drive which wouldn’t be able to move to the XBOX2 easiyl. With the PSX to the PS2, the PSX used memory cards so they just had to keep the size of the slot and make it read them. It was an easy move and people could keep everything they did before that. With the XBOX it is a bit harder, so backwards compatibility isn’t as easy or desired. There are also downloads and stuff, so backwards compatibility is the same as with the PS2 or even GBA. The hard drive that is sort of stupid, however, I read good reasons why they may be getting rid of it. Such as people hacking the XBOX, using it to pirate games, music, and movies, using it to install Linux, etc. It is basically to get people to stop usng it for resons other than ti was designed for. It is also probably an attempt to get some people to stop calling it a frickin’ PC! I do think that MS should be doing their own thing though instead of doing monkey see monkey do idea. Afterall, the XBOX did surprisingly well for being a newcomer. I hope that they do add the hard drive though, I like not having to manage my saves and having my music in the game I’m playing.