Yes you read correctly. Now you'll be able to kill people using Phone 7 or Xbox's. They might be able to kill you too but odds are you'll have a better input mechanism sorted out in your custom built, one of a kind gaming lair (read bedroom with clothes everywhere...).
This should mean you get most of the other things on Xbox Live which mostly give you the opportunity to give more of your money to Microsoft in different ways all from the safety of your house which you'll appreciate more once global warming kicks in...
If this teaches you anything, it should be that owning a Phone 7 device or an Xbox could get you killed in your own living room if your not careful. More on the news on the below link (it does have some good information not contained in this piece).
Oh and comment on the article below. I'd appreciate some feedback on if you like the style of the article with a link to a source.