360 indeed uses hypervisor [0], but uses it only for security, to make the app signature verification run on a higher level.
Windows on PCs also runs under hypervisor if you enable some security features (e.g. VBS/HVCI which are on by default since Windows 11 2022 update, or Windows Sandbox, or WDAG) or enable Hyper-V itself (e.g. to use WSL2/Docker).
The performance losses are indeed there, but by purely running the hypervisor you lose just around 1% [1], because the only overhead is added latency due to accessing memory through SLAT and accessing devices through IOMMU...
I'd imagine XB1 is running with all the security stuff enabled though, which demands additional performance losses [2]..