THQ has announced the "first augmented reality game" for Kinect - a virtual pet simulator called Fantastic Pets.
In the game, players and their rooms are represented on-screen alongside a virtual animal that they can interact with using 'touch' and voice. It sounds very similar in concept to SCEE's own EyePet for the PlayStation 3, but with different variants of creatures to choose from.
One can pick a starter pet from a selection of dogs, cats, horses and lizards, and then raise them to evolve into crazy variations and mythical creatures. You can end up with a unicorn or even a dragon if you're not careful. Talent shows, items and activities will all be included in the game.
Blitz Games Studios is working on the title, to be released in March 2011.