Xbox 360 not backwards compatible?

Like most of the juiciest dirt on the Xbox 360, none of this is substantiated, but a British magazine is reporting that Microsoft’s next-gen console will not be backwards compatible (frustrating, but not the end of the world), won’t come with a hard drive (which sort of jibes with what we’ve heard about MSFT offering an attachable drive), and that there will be different Xbox 360s tailored to different regions (not sure what that means for developers or why there would need to be different regional versions).

Not backwards compatible would seriously discoursge me from buying one. Mainly as i'd sell old one to raise funds for new one. Surely any idiot can see how strong the emu market is, so obviously poeple want to play old games, and look what it has done for prolonging the life of the ps1. I'll be disapointed if they dont have it