x0n writes: As of Windows 10 TH2 (10.0.1058), the core console subsystem has support for a large number of ANSI and VT100 escape sequences. This is likely to prepare for full Open SSH server/client integration, which is already underway over on github. It looks like xterm is finally coming to Windows. OpenSSH was previously announced (last year) by the very forward-looking PowerShell team. The linked article provides some context, and explains that the console host isn't the same as either cmd.exe or powershell.exe, but there is a lot of overlap in functionality.
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