Backwards compatibility is not gone, but it’s definitely on hold. One of the perks of the 360 was the fact that you could get the currently released XBox games, and be able to get an update that would allow you to play these games on the 360. However, Microsoft is now saying that there will be no updates until at least March. This means that any of the XBox games that are coming out now, are totally useless to 360 users until Microsoft decides to do the updates again. This is definitely going to cause a drop in sales of XBox games. And with the slow nature of 360 titles being released, there may be a lack in variety for at least the next couple of months.