A new report claims that Xbox 720 is going to have an AMD chip which uses x86 architecture. While Microsoft has not announced the details about its upcoming console, such a chip could mean that Xbox 720 will not be fully backwards compatible. It won’t be able to play game discs. The only way to play such games would be through emulation at software level. Microsoft is apparently going with AMD chips because it wants to cut manufacturing costs as well as entice developers to create more game titles. AMD is also providing chips for Sony’s PlayStation 4, the arch rival of Microsoft’s Xbox 720.
Much is being rumored about the Xbox 720 these days. Rumor has it that the console will require an always-on internet connection for playing games. Tweets from a Microsoft employee seemed to hint at that being a possibility, but the company quickly released an official statement saying that the employee was not a spokesperson for Microsoft. It also added that they have yet to comment on their product roadmap for this year. Microsoft is rumored to unveil Xbox 720 at the E3 conference, due to take place in June.