The issue with the Series consoles is that it requires a one time online activation out of the box. Which does suck, and if your console has an issue and you have to activate it again and those servers are closed then the console is a brick.
The article is confused, Series games on disc work offline but they are few and far between. All the Series games that are cross gen have the Xbox One version on disc and you have to download the entire Series version. So once again requiring internet so if the servers are closed in the future your disc is a last gen version and nothing more. Over time as cross gen fades we will see more Series only discs but right now it’s fairly rough with only about 10 titles with dedicated Series discs.
Finally yes the backwards compatibility is totally reliant on being online for Xbox One games and below to download a config file or in the case of 360 games and original Xbox games an entire download of the game that is wrapped in their emulator.
Like many have said here it would be great if these config files could just be pre-loaded onto the console. The Xbox 360 did this for original Xbox games, meaning you didn’t have to be online or download anything when popping in one of those original Xbox discs.
There are a lot of weird hoops to jump through that require an online connection with Series consoles.
The biggest issue is the one time online activation when using it for the first time or activating it again. PS5, Switch etc don't require this.
However, in the end the CMOS battery issue that effects the PS3, PS4, PS4 Pro, PS5 disc and PS5 digital is even worse. Since for the Series consoles it’s a hypothetical scenario if MS shuts down servers. Meanwhile the battery dying in those Sony consoles is real and when it dies it won’t allow you to play any disc or digital games on PS4 consoles for example. Or any digital games on your PS5 digital and even some disc PS5 games with the disc edition. This is DRM, where your access to your games is connected to the internal clock and the license it is keeping track of. So if it can’t figure out the date it can’t figure out if you can play it. This is DRM.
That battery will eventually die and unlike the Wii and Wii U that have a nice accessible slot to replace it with, the Sony consoles require you to completely open up and take apart the console to replace it, which many people will not have the capacity to do.
CMOS is a way bigger issue than a hypothetical MS server shutdown. Also remember your Xbox account is not just that, it is your MS account if you want to use Office, Teams etc. So if they were to shut down servers that means they would shut down all their accounts and services entirely which is just unnecessary to worry about when CMOS is an actual issue.
Modern Vintage Gamer has yet to do a dedicated CMOS video. With him working for Limited Run Games (that only do Switch, PC and Playstation) it’s clear he doesn’t want to ruffle Sony’s feathers being in business deals with them. So he’s lost all credibility to me at this point.