XNA Game Studio 4.0 allows for game development on Windows Phone 7 Series, Xbox 360, and Windows PC.
On Windows Phone 7 it will feature hardware accelerated 3D APIâ€™s on Windows Phone 7 Series and Visual Studio 2010 integration, for Xbox partners Xbox LIVE and a premium gaming experience on Windows Phone 7 Series.
Through the Gamer Services APIâ€™s a userâ€™s Gamertag and 2D Avatar will be available, as well as achievements and notifications for asynchronous turn based gaming.
ZuneHD developers are encouraged to transition their games to Windows Phone 7. Mary Jo Foley suggests a more compatible ZuneHD 2 may be coming to address this issue.