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So it seems i was right, Xbox SX need to work different way if they trying  to run UE 5 demo. Game developer need to change on how their engine work on Xbox SX to imitate the same result with PS5 UE5 demo

Billy Stilwell a head of Xbox Xcloud project and backward compatible said this on Podcast

https://lordsofgaming.net/2020/03/bill-stillwell-is-departing-project-xcloud-team-to-join-microsofts-hololens-division/