CV&G is reporting it:
http://www.computerandvideogames.com/news/news_story.php?id=120123
MICROSOFT TO COUGH UP BACKWARDS COMPATIBLE ROYALTIES
nVidia coin it in, plus: is the backwards compatibility library going to be bigger than expected?
12:32 Xbox 360's backwards compatibility is to cost Microsoft royalty payments to nVidia it has been revealed.
In order to achieve backwards compatibility on Xbox 360, the next-gen console's ATI chipset has to emulate patented nVidia technology, hence the royalty payout. According to analysts, Microsoft and nVidia have already shaken hands on an agreed royalty payment.
Microsoft to date has only confirmed that 'best-selling' Xbox titles will be playable on Xbox 360 and has yet to name games, but recent speculation suggests that the backwards compatible library may actually be far more extensive than originally thought - even larger than was hinted at by MS engineer Michael Brundage when he trashed claims on the supposed impossiblity of backwards compatiblity on Xbox 360.
According to website GameDailyBiz, it's reckoned that the majority of Xbox games are written on a single layer disc and as such should be pretty easy to emulate. As for Xbox titles in multi-layer format, well analysts are saying that the Xbox 360 will come with patches pre-loaded onto the hard drive to run these games on the next-gen console too.
Potentially Microsoft could release further such patches down the line over Xbox Live as well.
Interesting stuff to be sure, but we won't know concrete details until Microsoft serves up the official word on its backwards compatibility battle plan for 360. As soon as we get it, we'll let you know.