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Vor said:

So does physical BC is still matter right now? 

Absolutely. At least for me as an Xbox owner it does. I don't want games cramming up my hard drive, except indies, and MS is doing a fine job to enable backward compatitbility with many of my X360 physical games. Obviously the system doesn't support everything (yet), but it's a great concept, even if I still keep my 360 connected.

At least for me, physical BC is a great thing, still.