First, it seems it will be backwards compatible after all. According to Gamespot:
Second, according to Gamespot, the Xbox 2 GPU will be ready for Q1 2005:
Now lets hope IBM will be able to roll out enough CPU's at that time.
The Xbox 2 will use Virtual PC 7 for backward compatibility for original Xbox games. According to Geek.com's Apple Insider subsection, the reason for the delay of the latest version of Virtual PC 7 is that "Microsoft has given this project exclusively to the Xbox team." Why would they do such a thing? "Because the next Xbox will include an IBM PowerPC 970, and current Xbox game developers are shipped G5 PowerMacs," says Geek.com. While not confirmed by Microsoft, it sounds like a much more plausible scenario than last week's Xbox 2-backward-compatiblity rumor, which had a Silicon Valley startup providing universal emulator middleware for the next-gen console.
Citing market sources, IT news Web site DigiTimes reports that ATI is prepared to "roll out" its Xbox 2 GPU, code-named the R500, in the first quarter of next year. According to the report, the R500 will be based on ATI's next-generation R520 desktop graphics processor, and semiconductor foundry TSMC will produce the chip using a 90nm manufacturing process.
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