Update: Microsoft has commented on the decision to block access to Retail Mode emulators in a statement provided to IGN, while also suggesting that rumours of Nintendo being the reason behind the decision aren't accurate:
"The information currently circulating on Twitter is not accurate. Our actions are based on a long standing policy on content distributed to the Store to ensure alignment with our Microsoft Store Polices. Per 10.13.10, Products that emulate a game system or game platform are not allowed on any device family."
Original story: It's very much an open secret that the Xbox Series X and Xbox Series S have the potential to be fantastic emulation machines, but for obvious reasons, Microsoft isn't eager to tell the world about it. Nevertheless, plenty of people have been taking advantage of these capabilities over the past few years.
There are two ways you can access emulators on these consoles, and one of them is simply through the standard Retail Mode. However, as of this week, it looks like Microsoft has put a total stop to this method:
The other method, which involves signing up as a developer and paying a license fee, does appear to still be working for the time being, although obviously taking advantage of this is something you should only do at your own risk.
We wouldn't be surprised if some Xbox users find a way to temporarily get around these blocks, but ultimately it looks like Microsoft is very keen to clamp down on Retail Mode emulation moving forward. Will this extend to Developer Mode eventually as well? We'll have to wait and see.