Earlier quoted context omitted.
Xbox 360 used a PowerPC instruction set. It would seem unlikely that emulation could be efficient enough to have it work reliably good and fast.
It isn't necessary to purely emulate every instruction, you can cache translated code segments like a JIT compiler does. It has been done before for fast x86 emulation on a VLIW chipset: http://en.wikipedia.org/wiki/Code_Morphing_Software More details: http://en.wikipedia.org/wiki/Binary_translation#Dynamic_bina...
Then there's the problem where PowerPC is big endian and x86 is little endian so add potentially additional processing for network and file system code as well (models, textures, sounds, etc), in addition to any magic numbers[0] that may be used in the codebase.
While it is possible to emulate, the performance would be abysmal. Just take a look at GameBoy emulators for the PC. They use massive amounts of CPU due to the necessary overhead to emulate the processor, graphics, sound, etc. Trying to play a game like Call of Duty or Grand Theft Auto emulated from PPC to x86 would just be sluggish at best.