The Xbox One will not include backwards-compatibilty with Xbox 360 games.
On the back of the new console reveal, Microsoft has confirmed that due to the unique architecture behind the new hardware, users will not be able to play their old games on the system.
It stated that the Xbox One has been designed for a new generation of games which would make use of new cloud features and that would take advantage of the new processors house in the console.
Microsoft added it would however continue to support the Xbox 360 in future with new games and apps.
"Xbox One hardware is not compatible with Xbox 360 games," read a statement from Microsoft.
"We designed Xbox One to play an entirely new generation of games - games that are architected to take full advantage of state-of-the-art processors and the infinite power of the cloud.
"We care very much about the investment you have made in Xbox 360 and will continue to support it with a pipeline of new games and new apps well into the future."