In a decision that became unpopular with fans, Microsoft has disable features that allowed free emulation on both the Series X and Series S consoles in Retail Mode. In the last three years, people were allowed to use emulator apps downloaded through the Edge web browser for free and install PS2 games. According to PCGamer.com, on Thursday Gamr12, who distributed emulator apps such as DuckStation and RetroArch, posted a tweet, addressing the situation:

“For the past 2 years we’ve promoted legal emulation on a popular platform that people have genuinely enjoyed. It’s a true shame to see Xbox crack down on emulation for those who can’t afford Developer Mode, or don’t have the means to purchase it. This is a shot in the face.”

As @Gamr12 stated, Developer Mode still runs emulated games, which is a service you have to pay $20(US) for access. In a statement from Microsoft to Kotaku, they addressed the change: “We continually evolve our mechanisms for reviewing and taking enforcement actions on content distributed to the Store to ensure alignment with our Microsoft Store Policies.”

Ambiguous, this didn't clarify much with users and Xbox fans. It was possibly speculated that the big reason for this change in policy is Nintendo. In a report by TheVerge, gamer and user Alyanna McKenna, who states to be a Microsoft Azure developer, says she contacted an "unnamed friend at Xbox QA", who believes legal issues with Nintendo is the result, based on an email: 

"To answer your questions, the primary reason for the ban is related to legal issues with Nintendo. While emulating itself is not illegal, it can be used to play games from consoles that are still under copyright protection without permission, which can create issues with Nintendo and its affiliates.

Additionally, we take security seriously, and some emulators require permissions beyond what is typical for an app. This could create a potential security risk, as these permissions can be exploited by bad actors to gain access to sensitive information. For these reasons, we have made the decision to ban emulators on the Xbox store front."

A link for the full email can be read on Alyanna's Twitter here.

As this story evolved throughout the week, Microsoft released an official statement to IGN, clarifying this emulator ban update was based on a long-standing policy:

"The information currently circulating on Twitter is not accurate," reads a statement from Microsoft. "Our actions are based on a long standing policy on content distributed to the Store to ensure alignment with our Microsoft Store Polices. Per 10.13.10, Products that emulate a game system or game platform are not allowed on any device family."

Xbox has always been open about the access of emulation, so this reaching, almost sweeping change caught many off guard. The Nintendo angle could've been viable, as there is a binding agreement between Nintendo and Microsoft to bring the Call of Duty series to Nintendo platforms. It's not gone completely, as there are some workarounds for legal emulation. Seems that many should back up a lot of those ROMs and files, just in case.

SOURCES: IGN, TheVerge, PCGamer,