Your emulator will be out next month. Microsoft has VPC already and since they are contracting a processor from IBM with the PPC ISA (actually the Power ISA which includes the PPC ISA), the basic emulation engine already exist (the code to run x86 binaries on a chip with the PPC ISA).
What they'd need to do, however, would be to write bridge drivers for the hardware that 'emulated' the real hardware. right now, Virtual PC emulates a very old, very basic video and audio chipset. It doesn't matter if you have a Dual 1.42 G4 with a GF4 Ti video card.. when you install Windows in VPC, VPC reports the video hardware as being some nearly 5 year old video chip. You can't play any modern games in VPC because, not only is it too slow on compatible Mac hardware, but it emulates a video chipset that doesn't support any recent DX features.
MS also needs to wrap the core emulation code in a proper Windows Application. This will, after all, be Windows for PowerPC emulating embedded Windows for x86 so the Virtual PC application needs to be a Windows app too. This also shouldn't be a big deal since MS also bought VPC for Windows.
I think it's safe to say that, at this point, MS is already running xbox1 games in emulation on their test platforms. I would doubt that they play well.. because even emulating the performance of a Celeron 700 is tough... but it would be cake on a very high clocked multi-core, SMT PPC processor.
.. not that I believe the report. 😛