The term "forward compatible" is a bit silly because what's described is still backward compatibility. Also, we're already seeing some of this right now via the 360's original Xbox emulation and we'll see more when Sony eventually release a PS2 emulator for the PS3 which will (hopefully) scale the original software, just as the 360 does for Xbox games.
You're referring to a totally software-based emulator? I'd like to see them do that sooner rather than later, if for no other reason than so I can sleep at night knowing that if my 60GB PS3 dies I won't forever lose the ability to play my PS2 library in glorious HD.
This "rumor" on the whole is probably one of the safest pieces of fabricated news I've come across, of course the next Xbox will be backward compatible, and of course the games will look better and play "better" and faster because the 360 is already doing that with Xbox games.
However, whether we seen new DLC for "old" 360 games, is entirely up to the original developer, I very much doubt most companies will do this as they'll have new software and IP's they want to push.
This is all assuming of course we even get a "new" Xbox and PlayStation in the next 5 years, which isn't all that certain. Frankly I'd be fine with software updates of the kind we've seen for the PS3/360 for the next 5 years.
On the MGS4 rumor front, barring any technical hiccups MGS4 is a decent bet for the 360, after all subsitence came to the Xbox a while after the PS2 release, I don't see why that can't be the case here unless as I said there are technical limitations that prevent this.
QFT
