Update: Nintendo confirm game won't operate on older versions of the handheld.
Update: Nintendo have confirmed that the game will be exclusive to the New 3DS and XL models.
Original story: Xenoblade Chronicles, the upcoming 3DS port of the Wii RPG, will only run on the New 3DS models, it's been reported.
Silconera are reporting that Nintendo's Japanese Direct addressed the fact that the game is being developed exclusively for the 'New' 3DS handheld, which contains an upgraded CPU that allow the game to run on the hardware. As a result, it won't be compatible with the older 3DS models.
We've contacted Nintendo for official confirmation either way.