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They're only using G5 hardware because it's also a powerpc platform. IBM has designed the xbox360 chip basing it off of powerpc architecture.
The video card is proprietary and, considering it's a dev kit, It very well could be running it's own operating system.
Just because the hardware is Apple, doesn't mean it's a Mac.
Also, keep in mind. Microsoft is a SOFTWARE company. They have no allegiance to any particular hardware manufacturers. Just look at with numerous windows handhelds out there and you will see that MS is not x86 exclusive.
You better believe they would have Windows for Mac if Apple would let them.
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