While users have been able to install and run emulation programs on Xbox Series X|S since 2020, the policy has now changed to prevent users from doing so except in developer mode, which requires payment.
The reason for the policy change is unclear, but there is speculation that Nintendo’s legal issues with emulators may have been the reason for the decision. Nintendo is known to be strict about fake games and has even sued one of the sites and a hacker in the past for copyright infringement.
Source: Ferra

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