Final answer:
Backward compatibility allows new technology to use older standards, while upward compatibility means newer systems can read older files, but not vice versa. The demand for upgrades is further fueled by planned obsolescence, a tactic where products are made to become obsolete, prompting consumers to buy newer models.
Step-by-step explanation:
The capability of current devices to use earlier standards, known as backward compatibility, is a significant feature in technology. Conversely, an issue that arises with the continuous release of new software versions is upward compatibility, which refers to the situation where newer systems can understand and process files from older versions, but not the other way around. This often pressures consumers to upgrade to the latest software to remain functional and compatible with files shared by others. Adding to this pressure is the business strategy of planned obsolescence, where products are designed to become obsolete after a certain period, compelling consumers to purchase new models sooner rather than later. Technology companies rely on this strategy to maintain a steady flow of sales and to prompt customers to upgrade devices, whether it's due to a failure of the old product or the incompatibility of new software with older systems.