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At the moment, cost is the limiting factor. If they wanted the system to cost more, they could have put better gfx/cpu chips in. It may have required more of a redesign (than just an evolution from the GC), but it could be done.
Then essentially they'll be taking the exact same route of backwards compatiblility that Microsoft took between the Xbox and Xbox360, and they STILL haven't gotten it 100%, not to mention you cannot transfer over savegames and the like.



Nobody is crazy enough to accuse me of being sane.