So here's the deal. If you own digital titles in your Xbox 360 history, they will appear in "My games and apps" -> "Games" section. From there you have to browse all the way to the right and you'll see a list that says "Ready to Install". All your BC 360 games are there.
After you install a game, upon launching, you see a beautiful launch screen, exactly in the same vein as current Gen ones. Then you see a xbox360 booting animation and after that the console will verify your 360 account. Upon my first launch it took a minute and a half because of the initial check but subsequent attempts took as little as two seconds. An old style notification with your gamer tag and info how many friends are online pops up which leads me to believe this is some kind of a proprietary emulator. Then you're in the game. I cannot say if games are enhanced by additional power offered by the Xbone but they look exactly the same as their 360 counterparts. Same for frame rate. Viva Pinata Trouble in Paradise which I have tested earlier, worked flawlessly.
The console stores all your saves in the X1 cloud by default, and this is great as well as you can play multiplayer on emulated games, both with other X1 users or native 360 players.
You also get added pizazz in the form of screenshots and recording clips. However, since these games were originally 720p at most, screens and clips make the image seem truncated a bit because of changed aspect ratio.
I've recorded one clip already:
What is more, You can snap any app alongside emulated game.
Overall I'm very satisfied but I'd like to test more games to be more objective in my assessment.
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