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You will be able to play Xbox 360 games on your Xbox One later this year

Microsoft announces backward compatibility support for last-gen games on its current-gen console at the E3 games show.

Now playing: Watch this: Xbox 360 games work on the Xbox One

Microsoft on Monday surprised the video games world with news that its Xbox One console will be able to play old Xbox 360 games. Phil Spencer, the head of Xbox at Microsoft, explained at the E3 gaming conference how backward compatibility was one of the most requested features for Xbox owners. Microsoft has listened to its fans, Spencer said, and will deliver the feature later this year.

Here's how it works: If you previously bought an Xbox 360 game from the Xbox Marketplace, you will be able to download it to the Xbox One and play it natively. Users who bought games on discs can also take advantage of this feature too. Simply pop in the disc to the Xbox One download the game to your system.

James Martin/CNET

Aside from granting Microsoft permission, game developers don't have to do anything extra to make their games backward compatible. Xbox One preview members can play a selection of titles starting today, however everyone else will have to wait until this later this year. While no firm date was announced, Microsoft said that over 100 Xbox 360 titles will be available to play on the Xbox One sometime this holiday season.

You can view a complete list of compatible Xbox 360 games here.

The company also announced a new customizable controller called the Xbox Elite Wireless , which lets you swap buttons and features race-car style paddles.