The sad thing is, both the new Xbox and the PS4 are still behind current PCs, let alone what will be available in the fall and beyond. I've been a console gamer for well over 10 years, but I just built my first PC about 5 months ago and haven't looked back. I may buy a PS4 or new Xbox if the exclusives are good enough, but it's been really hard to go back to console gaming. PC is the way to go nowadays.
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Originally Posted by Mr_Draco
Right now, neither system will be backwards compatible. Sony plans on getting around this by using the PS Cloud. It is not known yet if Microsoft has any plans on how they are going to approach backwards compatibility. However keep in mind, most of the 360's games are done in HDDVD and Blu-ray does not read HDDVD's. Unless Microsoft includes a HDDVD drive in the new Xbox, you won't be able to play them.
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The Xbox uses regular DVDs, not HD DVDs. The HD DVD format was abandoned in 2008. Blu-Ray players can play DVDs, and probably theoretically Xbox 360 games, but extra hardware and emulators and such would be needed as well, so it's probably a cost-related issue in leaving that out.