Sony chooses not to allow this.
The Xbox X/S simply runs an emulator on the console, mimicking the OS of the earlier generations, allowing them to run earlier generation games. Its not rocket science – we’ve had emulators for decades and since Microsoft has access to the original OS code, they can make a near perfect emulator.
Sony could do this too – they have the same access to earlier gen PS OSs and could easily create emulators for the PS5. They simply feel that there isn’t enough money to be made in emulating PS1-3 games.
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