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You need to wake up and smell the cheese here pal, doing something like that would easily rake the cost up to about £300,000~ish, so there is no way thats going to happen, its too much of a risk.
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I don't know how accurate these figures are, but I do know that creating a game from scratch these days easily costs MILLIONS. Porting an already made, old XBox game onto a PC service that does not require retail costs should cost a fraction of what it would cost to make a new game. Yes, it is a risk, but making ANY game (or movie, for that matter) is a risk- only somthing like the top 10% of games in the industry at any one time make a profit, which seems like a pretty big risk to me. At least this would be relitivly cheap.
Remember that the XBox was never exacly the most popular of consoles, but the playstation Oddworld games were undoubtable a hit. Does it not make sense that maybe the reason that Munch's Oddysee was not very successful was because of its console of choice? With a relaunch of the game on the PC, I think that Munchs Oddysee could really have a chance.
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That link leads not to an emulator, but to a LEGAL update that was done by Microsoft, to preserve a backward compatibility of X360 with games from old Xbox. And Munch is one of the games that NEEDS this update!! If you have this than you can play Munch on your X360...
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Ah, I do appologise about the link thing. However, CxbX and Xeon are both illigal emulators, so you can see where I made the mistake.