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The demonstration consisted of moving a furry character from within the Kinectimals Xbox game over to a Windows Phone 7 device. Users of the Kinectimals Xbox game are able to generate a QR code that the Kinectimals mobile app then scans, and conversely, Windows Phone 7 users can take photos with the phone's camera, and then manipulate the images to include their "pets".
The connectivity between Windows Phone 7 and Xbox Live has always been something that Microsoft has promoted, but the actual experience has itself has been a bit lacking. This week, however, Microsoft and the Kinectimals team demonstrated the true potential functionality in a demo at GameFest in Seattle.