Don't Go to the Bathroom in a Backwards World

(Note: the title of this post refers to an episode of Red Dwarf, where our heroes visit a planet in which time literally flows backwards.)

Two articles on backwards compatability, both are huge for respective owners.
First, found on Digg, the PS3 may not be compatable with all the previous PS1/2 games (article: http://www.digitalworldtokyo.com/archives/2005/10/compatibility_i.html). I suspect that PS1 games will be in more danger, although the biggest games will be playable (ie: you won't be in fear of not being able to play Final Fantasy 7). A Joystiq article also points out that a new PS2 model in Japan is having problems playing some PS1 game, even some PS2 games.
I do hope this doesn't happen. One of the reasons I have been thinking about getting a Playstation is so then I could get all the past games, including PS1 and PS2. While it isn't a complete deal-killer, it certainly does rid of alot of my incentive to get a PS3, even though I dont' own a PS1 or PS2.

X-Box'ers are in quite a better mood with the latest on it's backwards compatability. There are now rumors that Halo 1&2 might get some enhancements when put into a X-Box 360 (story: http://www.joystiq.com/entry/1234000107064995/). The one enhancement that I can garentee is the new X-Box Live interface for Halo 2. Graphicly, we'll probably see better framerates. I doubt the quality of the visuals will be enhanced, since that would require new models to be put in. The only other thing, which I believe is likely, is HD support.
Such a move would be great for X-Box owners, who already are weary about the 360 not being fully backwards compatable. Although it is a rumor, I do think it is a likely one.