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i think i know why backwards compatibility was not included with the XB1/PS4, emulation, it would make emulating the 360 and PS3 very easy as the XB1/PS4's architecture is now pretty much exactly the same as a PC, they both use X86 which is the same as the PC, the PC is far more flexible with hardware and anyone with a moderate to high end PC could easily run an emulator and play 360/PS3 games at far higher resolutions and frame rates.



Current PC build:

Asus Z97I-Plus, i5 4790K @ 4.6ghz, EVGA GTX 980 ACX 2.0 1377/1853/124%, Corsair Vengence Pro 2400mhz 2x 8192mb, Corsair RM850, Corsair H80i, 120GB OCZ Vertex 3 SSD, 750GB Seagate Momentus XT SSHD, 320GB Weston Digital HDD, Corsair 230T, Corsair K50 Raptor, HP XQ500AA mouse, Windows 10 Pro 64bit. iiyama Pro Lite G2773HS 120Hz 1Ms G2G gaming monitor.