cogadh: Don't know if this has been mentioned yet, but a quote from MS regarding backwards compatibility:
"If you're backwards compatible, you're really backwards"
They aren't even letting you transfer XBLA games over to the new system. Apparently they seem to think that only about 5% of gamers play older games on their current systems. Considering that none of the current systems offer actual backwards compatibility, I don't really see how they came up with that number, but what I think they really need to look at is the sales numbers for HD remakes and re-releases to see how much gamers want to be able to play their old games on current systems.
http://blogs.wsj.com/digits/2013/05/22/microsoft-and-sony-diverge-on-gaming-cloud/
Well in the past I think things were a bit different which may have let them get away with side stepping the issue. This last gen was longer, and had a higher degree of quality compared to past ones. I think people are going to feel more burned by not being able take their library with them.
From a new console point of view I highly doubt they want backward compatibility at all. They want the opportunity to sell new games not old ones, and getting people to re-buy a new version of a game is far preferable to them than investing money on emulation that gets them nothing in return but a bullet point on the box.
I don't think they would ever say they aren't doing BC because it's bad business, but I suspect it's been said in some room somewhere. From a consumer point of view it sucks