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It's most important for the first batch of consoles. Typically, when consoles launch, the best games for it do not come out until an year or two passes by. So what do you do while waiting for said games to come out? Either replay games or work on your backlog from the past gen. It's nice to know that when you buy a new console, you have an infinite library of games that'll also work for it. After enough consumers who are in the market for say, PS4 games for their PS4 system, have been gained, then BC will typically be phased out. BC is definitely an important factor in buying new systems for early adopters. It's been proven with Nintendo handhelds, for example.

I don't think it should be a deal breaker, but I understand if it is for some. As for me, I was hoping for BC with PS4 but I will have to stick with a PS3 if I want to play PS3 games, as that seems to be the case.