It was the one feature onlookers have said would give Microsoft an edge in the next race of consoles, however according to Bloomberg, the next Xbox won’t boast backwards compatibility.
That’s because Microsoft dropped the IBM Power PC technology in favor of an AMD system-on-a-chip.
Anonymous sources told the site that the AMD part will include the “Jaguar” CPU and graphics chips, which means it will be difficult to make games designed for the IBM-powered Xbox 360 work on the next Xbox.
Sony is also going with the x86 PC-based architecture for its PS4, meaning the console suffers the same fate as Microsoft’s new machine. However through Gaikai, Sony plans on offering the feature via means of cloud streaming. It is unknown what is Microsoft’s offering on the matter.