Microsoft’s Mattrick says he doesn’t think compatibility is really a problem. He said only 5% of customers play older games on a new videogame system anyway, so spending time and money to develop technology to allow them to play older games isn’t worth it.

“If you’re backwards compatible, you’re really backwards,” he said.

Social media research firm Fizziology said its surveys of potential customers before the Xbox event showed 12% of them would be unhappy if there wasn’t backwards compatibility.