Using the 'Games Hub' on the handset, Windows 7 phone owners will be able to play games such as Halo: Waypoint, Crackdown 2 and Assassin's Creed, as well as access free demos of other games, multiplayer modes and even Xbox LIVE leaderboards.
The hub will also import information from a user’s Xbox Live profile, including their avatar and achievements.
"Windows Phone 7 takes a different approach to handheld gaming, utilising Xbox LIVE, Microsoft Game Studios, leading game publishers, and innovative indie developers, to create powerful, shared experiences for everyone,” said Marc Whitten, corporate vice-president of Xbox LIVE at Microsoft.
Gameloft, Konami, Namco Bandai, PopCap and THQ are among the game developers that will be creating specially modified games to be played on Windows Phone 7 handsets.
"Just like we've done with Xbox 360, our charter is to push the envelope and deliver definitive games that maximise the platform. We will have an incredible lineup of MGS titles, and that’s just the beginning," added Matt Booty, general manager of mobile gaming for Microsoft Game Studios (MGS).