As for game consoles, etc., they are usually based on standard processors. The gaming company just buys a processor and uses it - they don’t pump $ 200,000,000 into developing their own processor and are trying to compete with companies like Motorola, Intel, Freescale, etc.
The same industry standard processors often have industry standard debug ports, JTAG / BDM / NEXUS, etc. The manufacturer of the game console must also debug its own device! They are often used to reverse engineer what the console does when it launches its operating system. This is not always that simple, as you may have to look for ways to enable debugging features, but this is a general overview.
For the emulator itself, you need to emulate the hardware architecture and equipment. Once you can simulate this, you can simply “run” the operating system and games in the game console, and they don’t know that they do not work on real equipment. There are many methods for hardware virtualization, so it runs code quickly, but that's a completely different topic.
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