Microsoft has decided that the Xbox 2 will not support original Xbox games.
On the one hand, since nobody bought the original Xbox, the lack of support for the libraries of original Xbox games that nobody has won’t be an issue.
However, unless Microsoft ensures that a *really* enormous range of Xbox 2 games are ready at Xbox 2 launch, the lack of anything decent to play on the console will be an issue. And nobody would bother developing a library of games pre-launch for an unproven console (rather than committing the programming to something decent like the PS3) unless they were, well, Microsoft.
Perhaps shareholders in Electronic Arts, Konami, Acclaim, or Infogrames should expect some rewarding takeover action…