An xbox can play literally every game from previous systems. If you want to get your kids the largest library of games possible, I’d go with that.

Factorio.

Disc drives are software region locked. Not hardware.

You can use any drive to read any disc so long as you use the right software.

MakeMKV and others bypass all restrictions.

Considering how often a game or app gets taken down from the play store or simply refuses to install because its not been updated for your version of android, (even though the game will likely work just fine) I would highly recommend archiving APK files.