The Microsoft press conference at the Mobile World Conference is taking place right now and one of the demos shown was some integration with the phone and an Xbox 360 with Kinect
If you have Kinect, the bundled Kinect Adventures
has a game where you block red balls coming at you to a barrier across the way, knocking out blocks. Microsoft just demonstrated a way for the phone to link up to a game whereby the person with the phone can control the balls coming at the player.
So, think of someone with a Windows Phone 7 sitting on the couch interacting with the game as well as the player using Kinect to play the same game. A view of the player on the phone is shown as well as controls needed to shoot the balls at the player. Looks pretty cool and something that only Windows Phone 7 can do.