Xbox 2 to use Virtual PC 7 for backwards compatibility. Maybe.
In the latest speculation regarding Xbox 2 backwards compatibility, Apple Insider is reporting that delays of Virtual PC 7 are due to the fact that the project has been given "exclusively to the Xbox team." Why? In order to ensure Xbox backwards-compatibility on the Xbox 2, that's why. You see, Xbox 2 is slated to run on the PowerPC 970 chip, and current Xbox 2 developer kits are PowerMac G5s. While these rumors haven't been confirmed by Microsoft (like they'd do that), we can't think of any good reason that the Xbox team would be working on Virtual PC graphic emulation other than to guarantee Xbox backwards compatibility for the Xbox 2.