Yeah, I think it's because someone made some games with Torque that got the attention of Microsoft and Nintendo, got them to license it, and gave them the dev kit. Either that, or they gave Torque the license in hopes that someone will make games good enough for the console, to make it easier for them to license good games. If you buy Torque, I really think you would not be able to run on these consoles unless you've got the license and dev kit software/hardware. There are many, many conditions that you have to fulfill to get a license, including a game design they like, having an experienced producer, a track record of existing quality games (they will perform due dilligence and background check the team), a serious budget, even security of the facilities where the game is being developed, to protect their dev kit and trade secrets.

I don't think the fact that Torque supports these consoles will make it possible for unlicensed developers to actually build and run their games on Xbox/Wii. If your game is awesome enough that Microsoft/Nintendo give you license, then Conitec can probably port the engine to that platform assuming you can pay them for it. And if you have enough of a budget to develop a licensed game, you should have enough money to strike a deal for the port. So this is probably not the big exciting deal it seems on the surface. The average hobby developer will not be able to use this, not even the average indie developer who has sold some quality titles.