Although developers seem to love how robust and easy to use the development tools for Windows Phone 7 are, those tools could make building premium games a challenge. Applications, games included, appear to have no access to the camera. This problem prevents the creation of apps such as , or of augmented-reality functions like those in Yelp and other apps on iPhone or Android. It also precludes augmented-reality games.

Microsoft's development tools use a custom, free version of Visual Studio 2010 with Expression Blend and Silverlight. Most Windows Phone game creators will build their projects with a special version of XNA Game Studio, just like what indie developers use on Xbox 360. These tools make it easy to get an app up and running, but they can be limiting for major game development. Access to the underlying hardware is somewhat restricted, and developers can't really use third-party 3D game engines, something that is becoming all the rage for premium smartphone games. John Carmack recently showed off the hot powering Rage on the iPhone. Epic Games will license the for iOS developers; you can get a taste of it by downloading today from the App Store. The popular Unity engine supports iOS and Android, and is already used in a large number of games. You won't see any of this on Windows Phone 7 unless Microsoft either changes its rules or allows exceptions for specific developers or publishers on a case-by-case basis.

It's safe to say that Microsoft is off to an auspicious start with gaming on Windows Phone 7, but it's just that: a start. Xbox Live brings some good features, and Microsoft's relationships with major game developers and publishers have helped to seed the new platform with a number of top-tier titles.