No, I think amf7 is right... I don't know about the 360 but the PS3 doesn't use x86 so the instruction set for the Cell processor is completely different to the instruction set of the x86 processors we have in our PCs, therefore the code must be ported from x86 to Cell. That their compiler does it automatically is kind of irrelevant, conversion is still happening.
Instruction sets and programming languages are different things, instruction sets are what the processor can actually do and the languages are how you tell it to do those things. At the most basic level the processor has a limited number of instructions it can carry out, and if the instruction sets are different, one CPU might have the move command as, say, 0110 and another might use 1001 for the move command and 0110 might be, say, clear or something. It's late and I'm explaining it badly, but yeah. A programming language is just a level of abstraction. You have machine code which is all binary (very difficult to write with but it's the exact language the processor speaks), low level language, i.e. assembly code (resembles what the machine is doing, makes little sense to a human but at least it's using letters and numbers now) and high level language (the ones that use actual English words, like C for instance, which are easier to code with and are turned in to the binary machine code that the CPU can read by the compiler software).
Look up instruction set, machine code, assembly code and high level language on Wikipedia, that might explain it more clearly because Wikipedia never needs to sleep like I should've done about two hours ago!