Microsoft has provided a great work on a "selected" emulation, and not an unlocked one where the Xbox/360 emulator would be freely accessible for any games. As a platform owner, you cannot offer the promise of emulation if games crash or are bugged (something common with software emulation) and you also need to be legally ok with publishers of games supported.I think we need to view the extent of Microsoft's BC support as mostly a vanity project. They go the extra mile and it seems more of a passion project than an initiative that seriously drives platform adoption. A Sony exec pointed out that the data shows that BC polls well but doesn't actually get used and got raked over the coals for it, but I suspect it's largely true and minor in its impact to the platform.
Also publishers already have the freedom to put any PS1/2 games on the PSN, it's not only on Sony side. But clearly MS did a great job, it would be nice to have a virtualized equivalent for the PS123SPVITA, with some basic improvements regarding scaling and filtering. If this were to happened I am not expecting anything regarding physical licensing, but more a global subscription to access the entire thing.
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