Don’t think this means your Xbox 360 games will function in an Xbox One. They still won’t. However, Microsoft has stated that the company’s next-gen console may have the ability to play Xbox 360 games at launch through the power of the cloud. Sony fans should be familiar with the term “Gaikai” by now. At its core, Gaikai is a service that streams video games. Microsoft may have a similar project in the works for Xbox One.
“That’s one of the things that makes [the cloud] at the same time both totally interesting and hard to describe to people. Because what the cloud can do is sort of hard to pin. When you say to the customer, we want the box to be connected, we want developers to know that the cloud is there. We’re really not trying to make up some phony thing. But there are so many things that the servers can do. Using our Azure cloud servers, sometimes it’s things like voice processing. It could be more complicated things like rendering full games like a Gaikai and delivering it to the box. We just have to figure out how, over time, how much does that cost to deliver, how good is the experience.” — Albert Penello, Microsoft Senior Director
Remember that this means digital backwards compatibility only. You may want to keep your Xbox 360 lying around if you desire the ability to access your library.