According to a report by Bloomberg, Microsoft's next-generation Xbox console will not be backwards-compatible when it comes to gaming. In other words, games that you have on your Xbox 360 will not work on the next-gen Xbox.
Apparently, Microsoft is planning on using an AMD processor in its upcoming Xbox console, which will cut the costs of building consoles and spark interest in developers to create more gaming titles. Due to the change, game discs made for the current generation Xbox 360 will not be backwards-compatible.
"The Xbox will use an AMD system-on-a-chip that combines powerful “Jaguar” central processing units with graphics chips, said one of the people, who sought anonymity because the plans aren't public. The shift to the so-called x86 format ubiquitous in modern personal computers means Microsoft will drop the Power PC technology designed by International Business Machines Corp. (IBM), and game discs made for the current Xbox 360 won’t be compatible," the report stated.
This is an effort to save money by switching from Power PC to AMD, at the expense of gamers who currently own a Xbox 360. In our opinion, this is balderdash (wanted to be fancy with our words here). Why would Microsoft sacrifice its current Xbox 360 user base of over 76 million? Looks like we will have to wait until May 21 when Microsoft is rumored to reveal this next gen console.