The first game to be exclusive to this is Xenoblade Chronicles for the "New" 3DS, which is not backward compatible with current 3DS consoles. There's going to be more exclusive titles.
This is pretty much a repeat of Game Boy Color, where you couldn't play GBC games on the old GB.
How do people feel about this?
Oh and speaking of Xenoblade, Shulk has been officially confirmed as a SSB character.
Checking my email before the news this morning, this was the first I'd heard of it!
I don't mind it. I won't be getting one, but will wait until the next generation, which will almost certainly be backwards compatible, and just catch up on the few exclusive games then. Like how all the DSi ware is available on the 3DS now.
It looks pretty swell, though, and if I didn't have a 3DS XL already, I'd be holding off and waiting for this to come out.