Backward compatibility refers to the ability of a system, product, or technology to work with older versions of itself or with older products. For example, a new video game console, like the PlayStation 5, may allow players to use games designed for the previous console, the PlayStation 4. This feature ensures that users can still enjoy their existing games without needing to purchase them again. This concept is important in technology because it helps maintain user satisfaction and protects investments in older products. By ensuring that new software or hardware can still function with older versions, companies can encourage customers to upgrade without losing access to their previous purchases or experiences.