“This first console release is provided in source code form, so it’s for teams which include at least one C++ programmer. In a subsequent version, we’ll add support for binary-only development, so artists and designers can deploy their creations to console without ever compiling the code.”
That is from 1 year ago, so hopefully by now, things already changed.
Blueprints get converted into a language consoles understand, just as c++ does. It is just a visual representation of code being generated under the hood.
This note is still mostly correct. Iterating on your content (including Blueprints) shouldn’t require recompiles, but you’ll need the compiler/toolchain installed and have to build from the GitHub source code at least once per engine release in order to deploy to consoles.
Blueprint is not generating C++, it’s full virtual machine same as UnrealScript was. In other words it will work anywhere where UE4 is working without even need to recompliation, same as Java