One of the handful of new features heading to Windows Phone 7 is Xbox Live Kinect interface. The interface turns your Windows Phone into a companion for the Kinect gaming system. The above video demos the potential this integration has. No time frame on when such integration will be available was mentioned during Microsoft's Keynote Address at the 2011 Mobile World Congress.
The new feature will definitely expand the Windows Phone 7 role with Xbox Live and make Kinect gaming a lot more interesting.