After Microsoft had confirmed the Xbox 360 will be backwards compatible with some top-selling titles, this brought about some confusion in the console world as it left question marks as to which games will indeed be Xbox 360 ready. Current Xbox games simply will not be compatible with the 360 unless they are recompiled, not a procedure your average gamer is going to have knowledge of.Spong has a good write up in which they attempt to sort out the myth from the facts.
Xbox games will all theoretically be able to play on the next gen XBeast, but only if they are recompiled. Needless to say, unless you are some kind of 1337 hax0r, that's not the kind of procedure you're going to be able to carry out at home. We imagine that they are saying you'll be able to purchase the same old Xbox titles, but formatted instead to work on the 360. This explains why they said only 'top-selling' games - each title will have to be re-manufactured to run on the 360, and this will be driven by demand.
It's difficult to see what would induce people to buy games that they already own just to avoid the hassle of plugging their old 'box in again. The obvious solution to us would be some sort of exchange policy where people can trade in their old software for a 360 friendly-version.
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