http://www.videogamer.com/news/99_xbox_360_is_coming_claims_report.html

The backwards compatibility features of the next generation Xbox have been put in doubt after rumours of a super affordable $99 Xbox 360 hit the internet over the weekend.

Speaking on the latest episode of the "What The Tech" podcast, technology blogger Paul Thurrott said: "I mentioned before they're also going to sell a new Xbox 360 code-named 'Stingray' that will be $99."

Such an affordable price makes it possible to argue the case that the next generation Xbox won't feature backwards compatibility, says Thurrott.

"You might look at that as two things: backwards compatibility, obviously, suggesting - I don't actually know this for a fact, but based on the fact that they're making one - I don't think that the new Xbox will play 360 games. But that I don't actually know, that I'm guessing."

He added that its $99 price point will also open the Xbox 360 up to a new audience as a consumer media box.

"$99, that's a real cool price," said Thurrott. "And so we know that the Xbox 360 does Netflix, Hulu Plus, yada yada yada, and you can make the argument that's kind of a low cost entertainment device, too."

During the same podcast, Thurrott revealed that he believes the next generation Xbox will be announced on May 21.

Think this will be like the stripped down $99 Wii. A nice response to the next Xbox lacking backwards compatibility and a long overdue and significant price reduction.

I will buy another one at that price.

Could be problematic to the next Xbox though, really. Thats a really great pricepoint. If the next Xbox is $450+ and has the usual launch support lul, a $99 360 with arguably the best library of the generation will look VERY attractive.

I think a $99 360 should have been a Holiday 2012 option.

How about it then becomes free with aa two year subscription to XBox Live Gold?

Late gen and early adopters are pretty much two different markets. MS will benefit from both regardless. But yes, this should have been done sooner.

Wayyy overdue. I'll probably wait and buy onther slim. One of the white ones..... Sexiest console ever? Yes.

How stripped down? Theres no way it would not be lacking wi-fi as Microsoft genereates quite a bit of revenue off xbox live.

Honestly wi-fi and HDMI only and not able to play original xbox games for $99 would still sell like hotcakes, even without a hard drive and small flash memory.

Why would not playing original XBox games be taken out of it?  It is software based and really doesn't take up that much space or really add anything to the costs at all.  It would likely cost more to do a build that doesn't play original XBox games.

Dunno. I don't play original XBox games anymore, and don't know anyone that does on my friends list.

I'm just saying: What could they possibly remove? Ethernet port? G Wi-Fi only? Memory/USB slots? The $100 price drop would be awesome and would keep the xbox life going fo a few more years, could sell like hot cakes. Hell at $125 or $130 it would still do a major amount of sales. I'd pick up one at $99 if I could put my Hard Drive S in it, nice cheap back up for years down the road if BC doesn't exist.