http://www.eurogamer.net/articles/investigating-the-psps-psone-emulator-article
"The coding is pretty much a work of genius - there's strong evidence that the PSP's MIPS R4000-based CPU is running most of the PS1's R3000 code natively"
so yeah while they emulate controller interface, exi for memory card and so on, most of the ps1 coding is runned natively, nintendont is basicaly the same principle and was even inspired by how psp runned ps1 games.
That article sais exactly what I already said.
because of the MIPS it can probably run the CPU instructions close to natively but the rest is being emulated.
Do not asume me to be stupid..

