I just want to elaborate on HeisenbergFX4's point; He means that the hybrid machine Xbox is trying to build, HAS to be called a console in order to minimize liability. Emulation of Xbox titles via software would be legally challenged.
From what we found out a few weeks back, the plan is to shrink the Xbox hardware into a chip, which is incorporated into a PC. Any and all Xbox games that are not play-anywhere would run through this chip and thus satisfy the hardware requirement. On the other hand any and all new Xbox titles have Play Anywhere designation, so they can run via the regular PC route.
The machine would be a console for the purpose of running BC titles, while acting as a PC for anything else.
As I mentioned before, this setup is well known. Sony did this for PS2 and even 1st generation of PS3, squeezing the hardware of the previous gen into the new gen's guts for compatibility. So it is not new to gamers.
The question always is how expensive hardware would cost out of the gate, since BC titles don't earn money and PC games can be cheaper through steam. It just seems Xbox is determined to test the theories of some weird ideas that Neogaf has came up with. Like the idea of Series S being floating around here for the last decade until it actually happened.