Xbox One’s backwards compatibility fully explained

Backwards compatibility, arguably the biggest win in Microsoft's E3 Press Conference has undoubtedly created a ton of buzz.  However, one question has remained constant throughout.  How does it work?  Larry Hryb, Major Nelson himself appeared with Bill Stillwell, from Xbox's platform team, to showcase how the Backwards Compatibility feature will work in a new video posted to Xbox Live.

The video discusses the emulation process and demonstrates Achievements and Dashboard interaction all with a speedier version of Borderlands on display, showing the improved performance that Xbox users can expect from their old games.  Game saves will carry over from the cloud, and digital copies of games will appear in player's queues in the same manner that Xbox One digital games work.  Disc based games will be read directly by the console in a manner that tricks the discs into thinking they are being read by an Xbox 360.

Xbox Preview members can test out the Backwards Compatibility feature now but will come to all users some time in Q4 2015.