Yes, MS could have easily gotten this done by writing that check, costing them millions if not billions, and costing the consumer more money to buy the product, leading to fewer people buying it, leading to a smaller market which leads to less 3rd party games, which leads to even fewer people buying it, which potentially leads to the failure of the platform altogether. And no, that's not a exaggeration, releasing a very big, very hot, very expensive (even with the PS3's $500 and $600 setup that would be a big loss, you're talking about another $120 or more tacked onto the production cost) console would have been a serious, serious problem for Microsoft. They could have accomplished the same thing (BC) with free emulation, leading to none of those side effects and saving them money, and yet you do not see this. That is what says "dumbass" about your comments.