That is not a typo. The recent grumblings state that the next version of the Xbox, call it the 720, will have compatibilty with the 360, but this will also work the other way. An example is playing a 720 game on the 360, which looks good and plays great, but you will be able to play it on the 720 when you can afford it and the game will look that much better. Here are the guys who broke this and they seem to have it all figured out pretty well. Shenanigans anyone?
Does this mean Xbox 720 games will still only use a standard DVD? Game sizes are continuously getting larger, so unless they plan on caching a lot of data to the hard drive with installs, I’m not sure this is a terrific idea