Taking a moment away from E3, Major Nelson updated his blog to give the latest information on Xbox 360 backwards compatibility. The whole list of new titles can be found after the break, and you can always go to Xbox's site to get the full list.

This would typically be the part where we'd say something about how silly it is that the Xbox 360 has backwards compatibility issues in the first place, but now he's not the only guy in town with a problem. There aren't that many original Xbox games that are still worth worrying about. Our concern is more with the new version of the PS3 which will have "limited backwards compatibility," especially when there was nothing limited about its compatibility before. Oh well, if you're planning on getting the PS3 and you have a favorite old game on the system, make sure to check it will still work -- or got get yourself a current PS3 model while you still can.

We're still attempting to confirm what the new red light means on the PS3 controller from Sony*, but what we can confirm is that the new 80GB PS3 will have limited backwards compatibility. Clearly stated on the box, the system has apparently gotten rid of the chip previously used for US backwards compatibility and switched over to the European software version.

The box states: "This product has limited backwards compatibility with PlayStation and PlayStation 2 format software ... visit www.us.playstation.com for system software update." We're attempting to find out if the new 60GB versions rolling off the assembly line will also switch over to the BC software. So, if you're really into your old PS and PS2 games, might want to check and see if they are compatible with the software or get a system currently available before the switch.

*Update: From Dave Karraker, Sr. Director, Corporate Communications regarding the red light: "It is just a lighting trick. Nothing different or new about it."

In an "exclusive interview" with "semiofficial" Playstation blog, Threespeech, Sony's Phil Harrison provides some clarity regarding the PAL PS3's range of backwards compatibility, not to mention the opportunity to place even more quotation marks into this paragraph. "The situation is changing every day, but on March 23, we expect the list to include over 1,000 PS2 titles." Sony's head of worldwide studios is referring to the list of PS2 games that are expected to be supported by the software emulation found in European PS3s.

This announcement certainly defuses some of the controversy that resulted from Sony announcing the removal of PS2 hardware from European PS3 systems. After promising software support for a "limited" number of titles, many European gamers were feeling rightly cheated for having to pay a higher price for a PS3 with fewer features. Though the specific titles that comprise the list have yet to be announced (Harrison notes that Sony's policy is to focus on popular titles), it seems Sony is already far better equipped than Microsoft when it comes to fighting the inevitable onslaught of gamers complaining about their favorite title not being supported.

Mr. Harrison also promises that an online list of backwards compatible games will be available on March 23, and that it will grow with every PS3 firmware update.

We won't be satisfied until every Xbox title is compatible on 360, but today's backwards compatibility update is a major step in that direction. Sure, we knew the patch was coming, but it's a relief that it's here, Pyschonauts now playable -- as are Shenmue II, Indigo Prophecy, Mortal Kombat: Armageddon, Dead or Alive Ultimate, Buffy, Destroy All Humans, and others.

The update's final list of games also features some additional surprises (unrevealed during the premature posting on Xbox.com), most notably Soul Calibur 2 (North America only) and Conker: Live and Reloaded. Still, each of these bc updates is bitter sweet, inevitably lacking games we've been longing for. It's been a year, and still no Panzer Dragoon Orta?

For a brief moment in time, an updated version of the Xbox 360's backwards compatibility list was exposed for all the internet to see. Though it was yanked in a matter of minutes, one new entry stood out like an atomic mushroom cloud in a serene, children's playground. Not to imply that Psychonauts is capable of melting children or flooding large masses of land with deadly radiation, but its presence was rather devastating to the psyche.

In case you weren't aware (and clearly you aren't much of the time), Tim Schafer and his team at Double Fine did extraordinary things with Psychonauts, managing to take the seemingly incompatible platformer and adventure genres and mash them together like two pieces of clay. That's before they twisted the whole mess into a variety of amusing shapes.

Oh, there's a whole bunch of other new games too. However, when asked about the exact release date of this December update, Microsoft warned us that the list is not final. "We'll have more news soon -- as I'm sure you're aware with any software development, things can change at any time so we want to make an announcement when we're sure we've got the final, solid list."

View the non-final, slightly wobbly list of additions after the break.

[Thanks Nick! Thanks to Richard from Xbox 360 Fanboy for remembering to take a screenshot.]

Sony's PlayStation site now features a handy little Javascript program that lets you check on any compatibility issues the PS3 might have with the PlayStation catalogue. Instead of a list, however, you have to type in the games about which you are curious into the search box to find out all the glitches.

We understand not making a list of every PSOne and PS2 title that has compatibility issues, but at the same time we are not sure to what extent BC problems are prevalent. We are impressed with how detailed every glitch has been chronicled, so that you know exactly how the game will screw up (major or minor) while being played on the PS3. We decided to run of a few searches ourselves:

• Psychonauts, unlike its Xbox counterpart, "has no major problems" with the PS3. Huzzah!
• The Ratchet series works fine.
• The Jak series is okay, except for a handful of issues with Jak X: Combat Racing.
  
• Almost surprisingly, every Madden title works well. Only Madden NFL 2007 has some issues with static IP / DHCP and online gaming.
• Every SOCOM title has at least one or two issues.
  
• The Final Fantasy series is a mixed bag. X, XII, and Tactics work, but Anthology, Chronicles, Origins, VIII, and IX have issues. FF VII has one graphical anomaly during one of the first battles in the game. Final Fantasy XI has problems using the PS3's HDD, but a future software update promises to fix that.
  

Mess around the search box and let us know what else you find. Don't throw out your PS2 until you check your favorite titles first.

[Via CVG]

Sony has confirmed reports that several -- like 200* -- PlayStation 2 games are not functioning properly on PlayStation 3. The company claims most of the backwards compatibility inconsistencies relate to audio glitches, but admits that some games do not run at all. SCE spokesperson Satoshi Fukuoka said the issues would be fixed through future patches (likely built into firmware upgrades) distributed online.

Microsoft drew a lot of flak when Xbox 360 debuted with a paltry list of compatible Xbox titles (which shrank before it grew), but at least there was an effort to be honest to the consumer. That's not to say Sony was being overtly dishonest by advertising 100% backwards compatibility; if we had to guess, a team wasn't budgeted to test all of PS2's 8,000+ titles. Sure, you could bitch that Sony did a disservice; but let's be real, anyone lucky enough to score a PS3 during launch probably owns PS2 -- problem solved.

*200 titles account for less than 2.5% of the PS2 software catalogue.

See also: A HUGE backwards compatibility checklist for the PS3

[Thanks Marc]

Cheap Ass Gamer (and Joystiq's good buddy) CheapyD put on his thinking cap to figure out just what percentage of the top-rated Xbox games work on the 360. With notable classics like Psychonauts still unplayable (did you send out your e-mail?), how far along is the MS team in their ongoing struggle to getting "darn close to that stated goal of every title" backwards compatible?

CheapyD culled the titles from aggregate review-site Metacritic, cross-checked them against Microsoft's list, then threw it all into a chart for those of us who can't read are visual learners. The key points:

• 80% of the top-10 reviewed titles are backwards compatible. The two missing all-stars: Tony Hawk's Pro Skater 3 and Burnout 3.
  
• Only 27% of the top-300 reviewed titles are backward compatible. 

Even 300 titles is a far cry from the 800 or so titles currently available for the original Xbox. Wait, Far Cry? Nope, not available.

In a 180-degree turn from statements made over the past year, it would appear Microsoft is starting to back away from their previous commitment to make "every Xbox game work on the 360." According to Xbox chief Peter Moore, "Nobody is concerned anymore about backwards compatibility. We under promised and over delivered on that."

While Moore acknowledges there are still more Xbox compatibility updates on the way, he went on to say he was "stunned" that his team has been able to make hundreds of Xbox titles compatible with the Xbox 360. At last check, fan favorites Panzer Dragoon Orta, Soul Calibur 2, and the Kingdom Under Fire series were still absent from the official list, but you can still play Drake of the 99 Dragons!

If original Xbox games are to be made available over the Xbox Live service, how many of you would be willing to buy them (again)?

See also: The Engadget & Joystiq E3 Interview: Peter Moore
 

LEGO Star Wars II: The Original Trilogy will now be making an appearance on the Xbox 360, along with its earlier announced platforms (which include pretty much every current-gen system).

Whether creating a Han Solo-Greedo, lightsaber-wielding humanoid hybrid is really the wisest course of action or not is a debate best left to the fan community, however. (A green HanGreedo on the 360 -- it could work.)

Our only hope is that the original LEGO Star Wars will make its way onto the official Xbox backward-compatibility list by the time the sequel's released in September. Getting those unlockable characters from the prequels onto the next generation would be awfully nice. (Transferable saves? Even better.) The complete Lucasfilm press release follows below.

See also:

• LEGO Star Wars II out with OT DVDs Sept 12
• Original Xbox Games Playable on Xbox 360 (last updated in March)