http://xboxevolved.e-mpire.com/article/3rd_generation_Xbox/4902.html

so they are making it a computer..... only way to make it "forward-compatible."

There is no way a console gamer would upgrade the internal hardware in a console. The PS3's upgradable HDD is the limit.

Edit: I thought it meant future games past its gen could be played on it. Even the way they are explaining their idea to upgrade graphics is insane. They are expecting game developers to issue new graphical upgrade patchs for every game they have released. Console games arent like Runescape which every few years receives a face lift. We are talking games that have been completed and developers have moved on.

and they are expecting the devs to do all the updates to the games to get this on the road, bah microsft better be having some deep pockets if the want to convince all the devs to do this;

i dont understand...this is like upscaling for a dvd?

no they are saying that they would expect developers to basically re-make every game previously released with new graphical fedelity.

^^Not at all. They're talking about basically having the game be great on the 360, and then super-upgraded (not just graphically) on the Nextbox. Think, say, the original Xbox version of Splinter Cell: Double Agent compared to the 360 version.

ok so basically remake entire games.. that is retarded. Microsoft better have billions of dollars to waste in the game division. oh wait.. they dont.

 Uh, nowhere did they mention your little idea about remaking every single 360 game.  It would only be for developers who wanted to do this, like their possible example of Epic Games with Gears 3. 

However, I find this to be shaky, at best, on the basis that there is no way that the Nextbox will use DVDs.

they would probably only "remake" the biggest hits like halo and gears of war. Say it takes two years per game ... I imagine a lot of that time is taken up by writing a story and characters, working out how its going to play ect, a lot of that will already be done so all they have to concentrate on is "upgrading" the gameplay and graphics, again it will probably only be the biggest games that see forward compatibility.

well this doesnt sound interesting at all