The royalty is for allowing to emulate nVidia’s graphic circuit that is available in today’s Xbox with the ATi-based circuit in Xbox 360. This is required for Xbox 360 to be backwardscompatible something that most people is consider a given feature before the launch of Microsoft’s next console. It looks like we will be able to play most Xbox-titles on the Xbox 360 but it’s going to cost Microsoft a little more. Exactly how much is not certain but it doesn’t seem to affect the console’s price. New information states a price around $300. Source: GameDaily
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