Microsoft is working on real-time Xbox Live gaming between its new Windows 7 mobile phones and the traditional Xbox 360 home console, according to latest reports.

Speaking at this month's Microsoft X10 event in Toronto, a Microsoft rep outlined the plans for phone-to-console gaming functionality for its forthcoming Windows Phone 7 mobile operating system.

WMPoweruser describes how phones using Windows Phone 7 OS will at some point in the future be able to play games against opponents playing the same game on an Xbox 360 console in the home.

'Turn by turn' tech at launch

Initially, the first games will be tested out with strategy-style 'turn by turn' functionality.

"Initially we're 'turn by turn' based," said a Microsoft rep. "We are working on real-time phone-to-console, likely initially through Wi-Fi - again, operator networks are sensitive to that.

"That's not on day one; day one will be 'turn by turn' as well as companion-type gaming where you play a level on the phone and it may unlock a level or a weapon or some special achievement on the console game.

The rep added that Microsoft was "absolutely working on phone-to-console real-time. That is something we're working on and expect to have in the near future."

You can see the full video interview right here.

Head to Xbox.com for all the details you need on Windows Phone 7 and Xbox Live integration .

Via Joystiq