Maybe since Pastebin counts as a legitimate source for Durango rumors now, I guess I might as well shoot down some of the ridiculousness out there, even if my credibility doesn't count for squat here. For what it's worth, I worked for a recently shuttered developer, working on the early stages of a next-gen PS4/Vita/Durango/PC downloadable project that will never see the light of day.
But with no way of proving that without risking my name and ability to get another job in this industry, it's probably irrelevant. You can choose whether or not to believe any of the following. But I will say this... Anyone notice how VGleaks posted a "rumor" about the Xbox 360 mini, that claimed that by attaching it to Durango, it would enable backwards compatibility? Anyone notice how they followed that up with a posting from Pastebin, claiming that the Durango itself would have backwards compatibility?
Don't fool yourselves. It's because both are wildly inaccurate, which should be obvious, considering their contradictory nature.
The truth is somewhere in between and a lot close to what the "bigger" sites out there are reporting.
First of all, the "mini" is real, although that name is nothing I've ever heard. It's a just a slimmed down 360, minus the disc drive, and nothing more. There is no point in Microsoft splintering the market by including something in the mini that the vanilla 360 doesn't have. The "mini" will release sometimes this fall, alongside a price drop and redesign on standard 360s. The mini will be replacing the hard drive-free 360, so as to avoid market confusion with too many varying SKUs with differing capabilities/features. The "mini" will supposedly have a few new features the CURRENT 360s don't have, but those features will be delivered via a dashboard update that applies to ALL 360s, not just the mini SKU. One of these features, is background downloading of games. Similar to Sony, Microsoft is pushing for games that download in segments, to get a user playing as soon as possible. Instead of being limited to the next-gen Xbox, where it's a requirement, it's being encouraged (but not mandated) for the current systems. Things like better download list management are also included, making it easier to compare what is and isn't currently installed on the system.
As for Durango, much of what Kotaku has reported lately is accurate. It requires a constant connection to play Durango games in an effort to cut down on piracy, and eliminate used games. The internet connection is not required for anything but Durango-specific games. Basic features, including 360 games, work with or without it. Yes, it is backwards compatible out of the box.
Known already, is that games are installed to the HDD. Plenty of sites have reported it, because it's true. As a result of this, and the always-on requirement, games can now be played without the disc in the drive. There is another reason behind that. Games can now be downloaded from XBLM for free, in addition to being installed from disc, once the retail disc is activated on your account. The disc is basically just for installation and activation purposes. In addition to that, developers are being told that a month of Xbox Live Gold is automatically applied to a user's account, once any new game is installed. This is essentially Microsoft's answer to calls for a free Xbox Live service while softening the blow of eliminating the used market. If you buy a lot of games, Xbox Live basically becomes free. Live subscriptions will remain available separately as well though.
Everything I'm aware of has pointed to that being the finalized approach Microsoft has taken. As of about a month ago, it was all accurate, although, bear in mind, things could have changed since then.
A few other things of note:
1. The 360-related hardware included in Durango which drives backwards compatibility is not available to developers. It's re-purposed for the OS while a Durango game is running, leaving the majority of Durango's power in the hands of developers. Essentially, anything that can be done in the dashboard of the current 360 can be done while playing a Durango game. While in backwards compatibility mode, functions are limited to those of the 360 in-game dashboard. It's supposed to provide an environment identical to that of the 360, for compatibility reasons, although some non-game Durango-specific features, like an in-game browser, can run on top of that.
2. The controller is fairly similar to the 360 controller. The d-pad is improved (although I can't notice much of a difference myself since I never needed to use the 360 d-pad much to begin with). It's a bit less bulky as well. It's a bit closer to the PS4's controller in size, but is still very close to the design of the 360 controller. Personally, I think it's their best controller yet.
3. Achievements are making a return, obviously, but with some tweaks. Games now come with two distinct scores. Arcade games are now set at 500, with 500 additional points for DLC, while full games remain at 1000, with an additional 1000 for DLC. Now a user's score list is now represented by two base scores for each game, on for the main game, and the other for DLC, as opposed to having them combined as they currently are.
