I am surprised no one else came up with this conspiracy theory: MS might have just paid the guy to say that, like they spread rumors of PS3 price drops so people will hold out and not buy them.
Though $399 American isn't bad. The 360 Elite (which most go for) is $399. The PS3 also gives you more for your money (blu-ray of course, Wi-Fi, bluetooth, etc.), and a lot of those extra features MS makes you pay for. If you got an average 360 ($300 one), you would have to buy Live for a year, Wi-Fi adapter, you can still buy HDDVD drive add-ons (MS makes them, though no one makes HDDVDs), and more stuff I can't remember at the moment. Total Cost would take you over the PS3's price tag. Value vs starting cost is what it boils down to.
I do think they should release a patch or something for backwards compatability, it has nothing to do with the drive itself (or any other hardware), just an emulator-like software environment they already had at one point.
Though $399 American isn't bad. The 360 Elite (which most go for) is $399. The PS3 also gives you more for your money (blu-ray of course, Wi-Fi, bluetooth, etc.), and a lot of those extra features MS makes you pay for. If you got an average 360 ($300 one), you would have to buy Live for a year, Wi-Fi adapter, you can still buy HDDVD drive add-ons (MS makes them, though no one makes HDDVDs), and more stuff I can't remember at the moment. Total Cost would take you over the PS3's price tag. Value vs starting cost is what it boils down to.
I do think they should release a patch or something for backwards compatability, it has nothing to do with the drive itself (or any other hardware), just an emulator-like software environment they already had at one point.