The Xbox One will be able to play your old Xbox 360 games, but there's a catch

Microsoft just announced its living room game console, the Xbox One, will now be backwards compatible with Xbox 360 games.

Microsoft will offer digital copies of the Xbox 360 titles to anyone who has purchased the game, but you'll still be able to play your old discs.

But there's a catch: Not all Xbox 360 games will work with the service. Microsoft said around 100 titles will be available when it launches "this holiday season," but during the presser, Microsoft showcased "Mass Effect," one of the most popular games from last-generation consoles, as an example of an old 360 game you'll be able to play on your current-gen console.

This is a huge move for Microsoft as it aims to better compete with Sony's PlayStation 4, which got a head start in this generation's console wars.