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Zappykins said:

What?  Oh, I think I follow.  So you are saying Microsoft will convert every game for the developer?

You don't need to emulate the exact CPU etc, it's all within DirectX, so you just let that run. 

Fun Fact the Xbox 360 is basically a super computer from a few years earlier (eventhough it's 10 year old hardware.)

It's not that simple,  direct X worked on X86 CPU but not on Power PC games from Xbox 360, If you saying Xbox 360 is Super Computer, then it will become more imposible for Xbox One to emulate Xbox 360 games even on software level, the cheapest way is to add Xbox 360 CPU on every Xbox One and the expensive one is to make Xbox One CPU the same with  Power PC architecture but more powerful.  But i guess we just have to wait and see how does it work, but my guess is not emulation (sofware ) but simply port like how SONY did with PS2 and PS1 games on PS Network.