It'll have backwards compatability, I'm pretty sure about that.

I'm leaning more towards XBox 360 then the PS3, because personally, the PS1 and 2 consoles have less games that impress me then they have games that I either don't want to play or games I'd like to douse in acid. While XBox games, most of their games I like, the only ones I didn't like were the sports games and those real-life special ops games like Rainbow Six and Splinter Cell. (Sorry, but I dislike games with too much realism).