I know of no in-game runtime engine that supports that particular feature. (Similarly, I know of none that support Bulge and Tendons in Physique). Most game animators I know of end up putting in a special scale-only bone to do bulging/deformation, and drive it using a derived key from the rotation of the "real" joint bone.
Additionally, the X file format does not support morph targets of any kind; the FBX file format may support them, but the FBX importer and the ModelData format used to import meshes into XNA Game Studio do not support morph targets either.
Jon Watte, Direct3D MVP
Tweets, occasionallykW X-port 3ds Max .X exporter
kW Animation source code