There have long been rumors that Microsoft will sell two different versions of the Xbox 2, suggesting that one will have a hard drive that the other doesn’t. Now some of the speculation has reached even further:

The basic edition will not have backwards compatibility while the advanced version will. The premium version with the hard drive will have WebTV functionality built-in, including web, e-mail, IM, and streaming audio and video.

More in the article linked below.

Link: gameindustry.biz