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French developers Vertice and Bewise have developed an application that allows 3D models from a variety of applications, including industry standards like Maya and Blender, to be imported and viewed in the device itself.
While that application by itself it a bit esoteric, it does show what is possible using XNA on Windows Phone 7, and shows that the quality of games will not be limited by using this higher-level language.
Read more at Mobiletechworld.com